ITALIAN PANEL URGES EXCHANGE LIBERALIZATION

  Liberalization of Italy's foreign exchange
  controls should be "gradual" but also "reasonably rapid," a report
  issued by a study committee nominated by the Italian Treasury
  Ministry said.
     The report, looking at the country's financial development
  prospects, said Italy's large public sector deficit and growing
  public debt were among the considerations that made a gradual
  liberalization preferable.
      The report also favoured retention of the lira's six pct
  oscillation band with the European Monetary System (EMS) during
  the liberalization process in order to lessen short-term
  domestic interest rate fluctuations which could result from
  portfolio adjustments.
      The lira's fluctuation margin is currently significantly
  higher than that allowed for other EMS currencies.
      Italy has over recent months announced a series of
  deregulation moves in response to a European Community
  directive aimed at creating a genuine common market in goods,
  services and finance by 1992.
  

