GDP down, Italy is in recession, “Draw the budget only in 2017″ – Quotidiano.net

Nuccio Natoli
ROMA.
GOVERNMENT Istat and certify that the crisis continues. L ?? Istat anticipated that “the third quarter GDP will be negative,” while the ?? inflation will remain “close to zero”. The holder of ?? economy, Padoan, at the end of the Council of Ministers has instead added that “the macroeconomic situation is very deteriorated, so that at year end, the total drop in GDP would be 0.3%.” The Secretary, Graziano Delrio, however, ensured that “there will be additional measure for 2014.”
L ?? ITALY, however, comply quest ?? year the roof of the 3% deficit-GDP, while for the next aims for 2.9%. On the other hand, the government autoassegna two years more to reach a balanced budget, securing the 2017 are the cornerstones of update note to the Document of economics and finance (Def) that the government approved also thinking of the EU Commission. The crisis has also forced to acknowledge that at the end of the year, our GDP will suffer a further decline estimated at 0.3% (in spring was expected to grow by 0.8%) and that in 2015 there will be a recovery, but with a modest 0.6% (the old hypothesis gave all the ?? 1.3%).

L ?? UPDATE (negative) of Def becomes the new base to draw the stability law (ex financial) valid for next year and that, Padoan assured, “will give room for growth.” On the law of stability then there will be a real confrontation with Brussels. According Padoan, ?? the EU can not ignore that “we are in a situation with exceptional circumstances, negative growth for three consecutive years, price growth close to zero. This implies that in ?? scope of the EU rules is reasonable to imagine a slowdown in the pace of fiscal adjustment. ”
WANTING to look at the glass half full, the ?? have fixed the deficit / GDP ratio to 2.9% (previously 2.3%) ?? free ?? approximately € 10 billion can be allocated to support growth. The same reasoning applies to the displacement of the 2017 balanced budget. Thus, the Def puts on paper the request made by the premier Renzi all ?? EU, and that will materialize with the law of stability, “more flexibility and more time” for the consolidation of public finances. The government hopes a “normal ?? dialogue with the EU,” he summarized Padoan. A proof of the difficulty comes from the debt-GDP ratio will be at 131.6 quest ?? year and will rise to 133.4% in 2015
The glass half empty, however, shall be represented by ?? admission that the growth will be stunted in coming years, and consequently, will be equally modest positive results, for example, on the front of ?? employment. Another effect of the crisis is slowing down on the side of the privatizations that quest ?? year will be lower than expected, “but will recover in the next,” he assured Padoan.