Debt, competitiveness, work: Italy still in the sights of the European Commission – The Republic

Milan – Macroeconomic imbalances Italy are “excessive” and the EU Commission will continue the monitoring of the “risks” identified: the debt “very high “inadequate productivity and poor competitiveness. And ‘what we read in the new report on the imbalances produced by Brussels, where Italy appears in the large group of countries most at risk. “Italy is at risk of non-compliance with the rules of the Stability Pact and for this we arranged to meet in the spring to examine whether and to what extent will benefit from the flexibility clauses for investment, reforms and expenses for refugees” He said Commissioner for Economic Affairs, Pierre Moscovici, reiterating the position of the Budget flag.

The report on imbalances, Brussels writes that the results report “highlights the crux of low productivity growth that hampers growth prospects and improving competitiveness and making it more difficult to reduce the public debt. ” “Therefore – it concludes the analysis – the Commission considers it useful to further examine the persistence of macroeconomic risks and monitor progress in eliminating excessive imbalances”. Next year, then, Italy will continue to be under scrutiny to see whether the persistence of macroeconomic imbalances.

The Alert Mechanism Report on macroeconomic risks, released today, is the point departure of the ‘half’ European supervision of economic policies. The Commission then stretch-depth analysis (‘in depth review’) in February 2016 for Italy and 17 other EU countries that have imbalances. Among them there is also Germany which continues to be under observation for the surplus too high. “In February 2015, the Commission has concluded that Italy has excessive macroeconomic imbalances that required decisive action and specific monitoring, in particular the very high debt and weak competitiveness. In the ranking updated many indicators which exceed the indicative thresholds, in particular loss of export shares, debt, unemployment and increase of the youth “, writes Brussels in the new report.

” The drop in productivity and low inflation hold regaining competitiveness “and debt” It rose in 2014, driven by growth and low inflation, and deficits. ” In addition, “the economic weakness is also reflected in the decline of the investment / GDP, partly driven by a further contraction of credit in 2014″. Credit conditions in fact, “despite some improvements since mid-2014, continue to be affected by the large amount of non-performing loans.” Finally, unemployment had its peak in 2014, but remains high along with that youth and long-term. Although social indicators and poverty are stable, but “worrying levels”. Therefore, the Commission “is helpful, even taking into account the identification of excessive imbalances in February, still examining the persistence of macroeconomic risks and monitor progress nell’allentamento imbalances”.

In a situation like Brussels also part of France and Belgium. According to the EU Commission, in the three countries “increases the likelihood of debt-GDP unstable trajectories and vulnerability to adverse shocks”, the so-called alarm Alert Mechanism Report (AMR). Italy’s public debt is expected to grow this year at 133% of GDP, the highest level of the European Union after Greece, according to forecasts in Brussels on November 5. In France the debt would continue to grow, reaching 97.4% of GDP in 2017 and in Belgium is expected to reach a peak of 107.1% of the debt / GDP ratio and then see an improvement in the situation.

Arguments:

EU Commission

Italy

economic imbalances

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