Italy's economic recovery hasn't
stopped but is progressing sluggishly, although it should see a
slight uptick in the third quarter, said Bank of Italy Governor
Ignazio Visco on Thursday.
"Despite improvements from reforms, the production system
is still hampered by a climate unfavorable to business, still
weighed down by excessive bureaucracy, the slow pace of the
justice system, and illegal activity," he said.
He said Italy's high public debt leaves little room for
government intervention to support economic activity, in the
context of the tension between the Italian government and the EU
over Italy's 2017 budget plan.
He called observations on the seriousness of the Italian
banking crisis "exaggerated", citing recent Bank of Italy
analyses and adding that for banks in difficulty, there are
"specific actions" underway.
He also addressed job cuts in the banking sector.
The current plan to save the troubled Monte dei Paschi di
Siena bank features the shedding of 2,600 jobs and the closure
of 500 branches.
Visco said that in some cases intervention on personnel
costs can "assume an important dimension".
"To contain social consequences, existing social safety
nets will be utilised, (as well as) the resources of the
sector's solidarity fund, whose use was recently extended, and
(resources) that will made available with upcoming legislative
actions".
Visco was speaking on the occasion of the 92nd World
Savings Day, organised in Rome by the Italian Association of
Savings Banks and Foundations (ACRI).
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