EU reckons Italy's price range unable to spice up long-term development – paper

FILE PHOTO: The Italian flag waves over the Quirinal Palace in Rome, Italy Could 30, 2018. REUTERS/Tony Gentile/File Photograph

MILAN (Reuters) – Italy’s price range doesn’t comprise measures capable of increase development and makes Italy a “threat of contagion” for the remainder of the euro zone, La Repubblica newspaper stated on Thursday, citing a European Fee doc.

The newspaper stated the Fee’s Nation Report, attributable to be accepted on Wednesday, as saying the price range would have detrimental results on financial development, the price range deficit and debt.

“There are not any measures able to positively impacting on long-term development,” the doc stated, in response to the report.

Italy fell into recession on the finish of 2018 and the Fee has predicted development this yr of simply 0.2 p.c, down from a 1.2 p.c forecast it made final November.

This surprising slowdown may make it laborious for the federal government to satisfy its deficit goal of two.04 p.c of gross home product this yr, a hard-won compromise agreed with the Fee final yr.

Deputy Prime Minister Matteo Salvini advised Radio RAI it was too early to say if the federal government must introduce a corrective price range later this yr since “the federal government price range’s measures want time to have (optimistic) results on the economic system.”

Financial system Minister Giovanni Tria stated on Wednesday some 2 billion euros put apart within the 2019 price range for reserve spending needs to be sufficient to cowl any shortfall.

Reporting by Stephen Jewkes; Enhancing by Robin Pomeroy

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