To shed a bit more light on why the measures may diverge more markedly from time to time, let me focus on the last three major occurrences: at the time of the Great Recession in 2007–09, in 2012–13 and more recently. During the Great Recession, the widening range can partly be explained by the effects of the rapidly increasing excess capacity.
These new measures will reduce the length of legal proceedings and increase the recovery rate of creditors’ claims. A second set of measures allows for the immediate, rather than deferred, fiscal deductibility of banks’ write-downs and loan losses, aligning the Italian fiscal rules to those prevailing in the main euro area countries.