The Italian government intends to
take a more "expansive" policy approach through "selective" and
local investments to be outlined in the upcoming economic
blueprint, Economy Minister Pier Carlo Padoan said Wednesday.
Policies will be aimed at providing "support to
employment...while respecting the constraints" of financial
market and the Italian budget, he added in remarks to a
parliamentary budget committee.
The plan is outlined in the 2015 economic and financial
document (DEF) that will include 49 new infrastructure projects
and is to be approved by cabinet and presented to parliament "at
the end of next week," Padoan said.
The government also intends "to make more efficient use of
the new flexibility in the European Union (budget rules) in the
medium-term," said the minister.
Italy has already made use of that flexibility with the
current budget, by gaining more fiscal room to balance its
budget and reduce debt at the same time it implements structural
reforms.
Padoan also told the committee that Italy's internal
stability pact "must go because it works badly....this mechanism
is misusing resources".
The pact, which requires regional and local governments to
balance their budgets, has long been criticized by national
government officials.
Last year, Padoan said the internal pact was "inefficient"
and contributed to a constraint in the full use of European
Union structural funds.
Meanwhile, Padoan told the committee said that Italy's
economic data are looking increasing positive and this trend
will likely continue.
"I read the data as a strengthening of the recovery...I
expect more and more positive data," Padoan said.
He acknowledged that Tuesday's increase in jobless figures
was "apparently contradictory" to the positive outlook.
The rise in unemployment in February to 12.7% from 12.6%
the previous month came after reports of a jump in consumer and
business confidence, suggesting that the recovery is
somewhat uneven.
Further positive economic data came Wednesday in a
surprisingly strong number for March's purchasing managers index
(PMI) in manufacturing.
The Markit-ADACI Economics PMI rose to 53.3 in March from
51.9 in February, and exceeded expectations that the figure
would be only slightly higher, at about 52.1.
The March data was also the highest since April 2014 and
was over the level of 50, the demarcation between expansion and
contraction.
Across the eurozone, the PMI index, which represents
manufacturing activities, rose to an average of 52.2 in March
from February's revised 51.
Padoan also urged a continued emphasis on structural
reforms in the Italian economy, to eliminate longstanding
"obstacles to growth dating back well before the outbreak of
financial crisis".
Italy has been changing its labour market and now is
preparing changes to its election laws as well as justice
measures.
The path to reform is essential "to attack the causes
the crisis and open (Italy) to new investment opportunities".
ALL RIGHTS RESERVED © Copyright ANSA
