This note summarizes the most relevant regional features of the fiscal consolidation effort undertaken in Italy as a reaction to the sovereign debt crisis. It is shown how the economic and social implications have been stronger in the Mezzogiorno regions, mostly because of the higher dependence of this area upon the demand triggered by public funds. Then the note discusses the main factors limiting the effectiveness of the actions undertaken in the area of structural reforms and functioning of the public administration, which remains overall worse in the Mezzogiorno.
Keywords: Fiscal consolidation, regional differentials, structural reforms
Jel Code: H30, H60, R10