The execution time for projects financed by the European Regional Development Fund is nearly twice as long as scheduled in Italy, compared with average overruns of just one quarter in the rest of Europe, and cost overruns are 40 per cent as against 20 per cent.
The legislation created provision for a Policy Targets Agreement (PTA) between the Minister of Finance and the Governor of the Bank. In practice, the PTA defines the objectives of the Bank, specifies an inflation range representing price stability and outlines considerations that the Bank must give weight to in framing monetary policy decisions.