Italy's problems come under six main headings. To overcome them, it needs to: 1. continue to liberalise its economy; 2. loosen up its labour market; 3. overhaul its welfare system; 4. reconnect the south, not with handouts but by continuing to devolve powers to the regions;rn5. bring in constitutional and electoral re-forms that will move it towards a bipolar system to produce more stable governments; andrn6. clean up what is still the European Union's most corrupt country.
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