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For several years Italy has adopted budgets compliant with the requirements of the European Monetary Union (EMU); representatives of government, labor, and employers also agreed to an update of the 1993 "social pact," which has been widely credited with having brought Italy's inflation into conformity with EMU requirements. Italy must work to stimulate employment, promote wage flexibility, hold down the growth in pensions, and tackle the informal economy. Growth was 1.3% in 1999 and should edge up to 2.6% in 2000, led by investment and exports. · Purchasing power parity - $1.212 trillion (1999 est.) · Purchasing power parity - $21,400 (1999 est.) · 0-14 years: 14% (male 4,220,973; female 3,977,962) · 15-64 years: 68% (male 19,413,219; female 19,596,668) · 65 years and over: 18% (male 4,297,962; female 6,127,543) (2000 est.) Pop growth rate- .09% = 9,13 births/1,000 pop Italy is Mostly Free based on free choice, free enterprise, freedom from direct intervention by government, trade policy, property rights, black market, and wage and price controls. Italy is of very low risk when considering corrupt or poor political leadership, frequent changes in the form of government, political involvement of religious or military leaders, an unstable political system, conflict among races, religions, or ethnic groups, and poor relations with other countries. Italy is in the top five of the highest human development countries. Italy is a developed country because it is highly industrialized, highly efficient, and the people enjoy this high quality of life. There are 219 Internet service providers in Italy at this time. 23.1% of Italy’s population has a personal computer in the home. This was approximately 2,118,000 Lire spent on computers in 1999. A rebound in economic activity has been under way since mid-1999, stimulated by a recovery in external demand. Following an annual average rate of expansion of around 1½ % over the past four years, GDP will pick up in 2002, based on accelerating world demand, a weaker euro, gradually increasing household disposable incomes, and improving business confidence. There is also employment growth. Unemployment has begun to fall from its currently high level. The underlying momentum of the economy, appears to be well-established and current growth rates of real output should be at least maintained into 2002. Import Licensing: Practically all goods originating in the U.S. can be imported without import licenses and free of quantitative restrictions. There are, however, monitoring measures applied to imports of certain sensitive products. Retail clothing is not one of them. Rulings by individual local customs authorities can be arbitrary or incorrect, resulting in denial or delays of entry of U.S. exports into the country. Considerable progress has been made in correcting these deficiencies, but problems do arise on a case-by-case basis. Most of the treaties in force between Italy and other countries follow the standard form of the Organization for Economic Cooperation and Development (OECD). The purpose of the treaties is to eliminate double taxation by taxing the income only in the country where it is earned through a permanent establishment. Most of the treaties are with developed countries, but in recent years several treaties with developing countries have been concluded. Regan signed a treaty against double taxation on income. Industrial and commercial profits are taxable in Italy under the terms of most tax treaties if earned through a permanent establishment in Italy. The IMF follows the principle of nondiscrimination; an applicant’s quota should be in the same range as the quotas of existing members of comparable economic size and characteristics. There is no general requirement that imports be marked as to country of origin. Under Italian legislation, the origin of imported merchandise is established through documentation accompanying the shipments arriving in Italy and not through marking of products or their containers. Certain specified commodities, however, must be marked or labeled to show composition, and name and location of manufacturer, in accordance with various laws and regulations. As a member of the EU, Italy applies the product standards and certification approval process developed by the European Community. Italy is required by the Treaty of Rome to incorporate approved EU directives into its national laws. However, there is frequently a long lag in implementing these directives at the national level. Bibliography: Bibliography: http://www.amsworldwide.com/facts/ita-fax.html http://www.odci.gov/cia/publications/factbook/geos/it.html http://www.rhpinc.com/vwa/eng/worldpho/europe/italy.html Albertini, R. "Windows on Italy" http://www.mi.cnr.it/WOI/ Bank of Italy, The official web site of the: www.bancaditalia.it DiLorenzo, Thomas J. "Economic Fascism" The Foundation for Economic Education. June 1994 http://www.banned-books.com/truth-seekers/1994archive.121_3/ts2131.html Italian Statistic Institute, The. Economic Data about Italy and National Institute of Statistics, The. http://www.istat.it OECD Economic Outlook "Italy" Issue: Dec, 1999 http://www.findarticles.com/m4456/1999_Dec/59014330/p1/article.html OECD Economic Surveys "Assessment and Recommendations for Italy" http://www.oecd.org/eco/surv/pdf/italy00.pdf "San Marino Economy" http://www.photius.com/wfb/wfb1999/san_marino/san_marino_economy.html Volttattorni, Dario. "Conferences between businesses in Italy" 1998 http://www.geocities.com/SoHo/Cafe/8460/ Word Count: 793
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