The article illustrates Italy's economie recovery as part of a process of re­newal involving the institutions, every area of the economy and ltalian socie­tyas a whole. After the turning point in 1992, a generaI consensus emerged that European integration was necessary and fully consistent with the natio­nal interest. In this context, the three components of economie policy ­budgetary policy, incomes policy, monetary policy -are working in tandem, ensuring stability, the essential condition for any lasting and sustainable growth. Thus inflation has now been beaten; the balance of payments on current account has recorded increasing and substantial surpluses, and there has been a huge reduction in the budget deficit, with a large primary surplus.
The sustainability of these results is ensured by the implementation of structural reforms: tax reform, reform of centraI government budget, reform of the civil service, pensions reform and reform of Italy's commercial system.

JEL Codes: E65