Italy to seek new EU deal
ITALY is to seek a new deal with the European Union to allow it to kickstart its stalling economy with an expansionary 2017 budget.
Economic Development Minister Carlo Calenda’s comments came three months after Rome was granted “unprecedented” leeway over its 2016 budget and warned by the European Commission that it should be tightening fiscal policy next year.
Mr Calenda spoke out after latest data showed the Italian economy failed to grow between the first and second quarters of this year, suggesting a sluggish recovery which began last year has stalled.
Analyst s say the government will now have to revise downwards its forecasts of growth of 1.2 percent for this year and 1.4pc in 2017, with knock-on effects on its deficit reduction plans.
The Commission has set Italy a deficit target of 1.8pc for 2017, arguing that kind of adjustment is necessary to reverse the upward trend in the country’s huge debt. –