No guarantee of reforms in Italy

In Italy, the outcome of last week's Senate vote is encouraging and should pave the way for additional economic reforms. 

But, as observed in other euro area member states with stable parliamentary majorities, putting in place often-unpopular structural reforms is by no means an easy feat. 

"The government already succeeded in implementing an ambitious labour reform at the beginning of the year, but there is tremendous room to further boost potential growth (currently among the lowest in the euro area at between 0.5% and 1% p.a.)", says Societe Generale. 

The aforementioned institutional changes can be seen as a prerequisite to achieving this but not a sufficient condition.