Rome, Sept. 24 (Xinhua) -- The Organization for Economic Cooperation and Development (OECD) on Monday urged Italy to be alert on possible backlash on the reform measure imposed by the emergency government led by its Prime Minister Mario Monti.
"Say no to the temptation to go back and dismantle the reforms carried out," OECD Secretary General Angel Gurria told a meeting of OECD and Italian government officials including Monti.
"The structural reforms launched by the Monti government will make it possible for Italy to increase GDP by 4 percent over the next 10 years, an increase of 0.4 percent a year solely on the basis of the reforms announced so far," said Gurria. Italy's moves would generate big rewards, he said.
The OECD chief agreed with Monti's assessment that Italy is now part of the solution to the eurozone debt crisis, rather than a source of problems.
"The future of Italy is not the only thing at stake, the construction of Europe is," he said. "Italy is making a decisive contribution to this."
Noticing Italy's challenges, such as reducing massive youth unemployment and boosting productivity, lie ahead, Gurria said "youth unemployment in Italy is three times higher than the (OECD) average of 11 percent, at over 35 percent, which is not just a number."
"This represents broken dreams, the loss of confidence and sometimes desperation" he said, referring to a new OECD report over Italy's lowest growth rate of productivity in the OECD members.
"Italy must face a series of challenges in terms of competitiveness. Indeed, greater competitiveness is a key element for the consolidation of growth," the OECD report said.
Since November last year, Monti's government has introduced a series of reforms, including liberalization in many sectors and labor-market measures that will make it easier for firms to dismiss workers, a move designed to boost productivity and make companies more inclined to hire people.
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