MILAN (Reuters) - Italy will need to wait for two or three years to see an improvement in its productivity as a result of reforms introduced by Mario Monti's government, the head of the euro zone's bailout fund ESM told daily Il Sole 24 Ore on Wednesday.
Klaus Regling, at the helm of the newly-formed European Stability Mechanism, said the recent fall in Italian government debt yields was the first tangible result of Monti's fiscal and structural measures.
"The impact of structural reforms on productivity, however, cannot yet be seen. But this is normal. It will take between two and three years to see some improvements on productivity," Regling was quoted as saying.
Quizzed on the details of Spain's 100 billion euro banking bailout, Regling said that the agreement signed between Madrid and the temporary EFSF bailout fund provided for up to 30 billion euros to be issued quickly. He said if this needed to be done before the end of the year, it would be the ESM which would pay out the money.
Italy's productivity remained below the European average for the last decade for lack of structural reforms.
"But Italy is now on the right track. Italians must not be disheartened by the lack of immediate progress: progress will come," Regling added.
(Reporting by Lisa Jucca; editing by Patrick Graham)
