‘Lack of Measures in the Budget Italy can Damage Eurozone Countries’
The Italian budget does not include measures to stimulate economic growth in the country, the European Commission says in a policy document that is in the hands of the Italian newspaper La Repubblica. This allows the country to ‘infect’ other eurozone countries with its economic situation.
Beginning of this month, it became known that the Italian economy in the fourth quarter of 2018 officially ended up in a recession. Due to the lack of measures to stimulate economic growth again, the European Commission expects eurozone countries to feel this too.
“There are no measures that are capable of positively influencing long-term growth,” says the Italian newspaper from the document.
La Repubblica quotes the so-called Country Report from the European Commission on Italy, which is published on Wednesday. According to the report, the 2019 budget has a negative impact on economic growth, the budget deficit and the national debt.
In the other half of last year, the Italian economy ended up in a recession. After the economy shrank by 0.1 per cent in the third quarter, the economy fell by 0.2 per cent in the fourth quarter.
The European Commission also adjusted the growth forecast for 2019 to a minimum growth of 0.2 per cent. In November the commission predicted an increase of 1.2 per cent.