WHEN Matteo Renzi, Italy’s prime minister, came to power in February 2014, he promised to push through a daunting list of reforms at the breathtaking speed of one a month. Those who knew Italy well were sceptical, and indeed Mr Renzi has not kept to his schedule. Nonetheless, when he meets Barack Obama in Washington next week, Mr Renzi’s economic and political position will be stronger than at any time since he took office.
Italy appears to be emerging from a recession that has lasted for more than three years—its longest on record. Falling oil prices, the European Central Bank’s quantitative easing and a weaker euro are all doing their bit. Even the opening in Milan of the latest world expo on May 1st should boost GDP. Mr Renzi has pencilled in growth for this year of 0.7%.
Some of his advisers think that will prove an underestimate. They argue that reforms Mr Renzi has undertaken over the past 14 months are starting to have an effect. These include enhanced access to credit for small firms, a cut in a much-criticised regional tax on company turnover, fiscal incentives for employers in a new labor reform and an €80 ($ 87) monthly cut…