Italy is seeking a new agreement with the EU to revive its failed economy with the establishment of an expansionary budget in 2017, said Saturday the minister of economic development.
About Minister, Carlo Calenda, come three months after Rome had been granted some leeway “unprecedented” in its 2016 budget and that the European Commission has ordered it to tighten fiscal policy next year. The minister was speaking following the publication by Eurostat of a note showing that the Italian economy has failed to develop between the first and second quarter of this year. Analysts predict that the government will now have to revise down its 1.2% growth forecast for this year and 1.4% in 2017, with a ripple effect on its plans to reduce the budget deficit.
“The Treasury will present an update of the figures in September. I can not hide that the margin of maneuver is tight,” said Carlo Calenda everyday Turin La Stampa . “We are discussing with Europe how to address the critical need to boost public and private investment.” The minister acknowledged implicitly that might mean a 2017 budget deficit higher than expected earlier, probably higher than the 3% limit set by EU rules.
The Commission has set Italy a fiscal deficit target of 1.8% for 2017, arguing that such adjustment is required to reverse the upward trend of the huge debt of the country reached 2.250 billion euros in June.
“We intend to respect the rules, but we are fighting for change,” said Minister for whom “the absolute limit is the debt, which can not increase “.
“We’ve got a lot of flexibility and we intend to ask for more, the maximum possible, but always within the rules,” he added.
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