Italy is plagued by nepotism, legal gaps and institutional deficiencies that prevent the country from getting serious about fighting corruption, according to a new report.

The country needs an independent anti-corruption watchdog to hold the country's politicians, public officials and institutions accountable, according to the report, released Friday by Transparency International Italy.

Italy ranked 69 out of 183 countries on the transparency group's Corruption Perceptions Index, the worst among EU countries. Most recently, the country has been rocked by the corruption scandal of former Italian premier Silvio Berlusconi. Only 5% of Italians say corruption is declining, according to a recent TI survey.

"In recent years, Italy's leaders have not done half as much as they should have to fight corruption," Maria Teresa Brassiolo, head of Transparency International Italy, said in a news release. "Their failure to act has left systems of accountability and control of public spending weak and expensive, leading to enormous waste. We see examples of this on an almost daily basis and it can no longer be accepted."

The survey, which evaluated the effectiveness of Italy's politics, public service and businesses and anti-corruption enforcement, also recommended specific codes of conduct for members of parliament and an end to parliamentary immunity from prosecution.