Recognizing the importance of sound ﬁscal positions for a monetary union, the Stability and Growth Pact focuses on mechanisms to contain the build-up of excessive levels of public debt at the level of individual member states. The European sovereign debt crisis has been a painful reminder of how important incentives to maintain sound public ﬁnances are.
The opportunities offered by the National Recovery and Resilience Plan Over the longer horizon, economic prospects for Italy may benefit substantially from policies aimed at fostering growth potential.