Beginning in 1992, Italy has undergone a dramatic process of fiscal consolidation. Within that framework, the policy strategy has covered a broad range of objectives and addressed the main structural imbalances of the Italian economy. This paper describes how the new policy course has been reshaping the role of the State within the Italian economy, with a view of reducing the State’s weight and direct involvement in the management of businesses. This has also implied a profound transformation at the decisional and administrative levels, as testified by the ongoing merge of two separate administrations, the former Ministry of the Treasury and Ministry of the Budget, into a single entity.
