2017 will be the fourth straight
year of economic growth but "the level of growth reached does
not excite us, we can't say we're satisfied," Economy Minister
Pier Carlo Padoan told a parliamentary hearing on the
government's DEF economic blueprint Wednesday.
He said the unemployment rate was "unacceptably high,
especially among young people", at over 35%.
Padoan said that "if we were to accelerate the contraction of
the deficit beyond what is reasonable, we would risk hitting the
recovery.
"We need a gradual budget adjustment".
Padoan said "the country must go along a narrow path" given
the structural limits to be tackled with reforms and its high
debt. of more than 130% of GDP.
Padoan said that "a U-turn on the policy of (fiscal)
consolidation would be counterproductive" and would be a
"ruinous choice for the country which would pay the
consequences, especially among the weaker classes".
The government has stopped budgetary safeguard clauses on VAT
and duty hikes kicking in thanks to spending cuts and other
revenue, Padoan said.
A further 15-billion VAT hike still has to be "sterilised",
he said.
Padoan told the parliamentary hearing that government tax
cuts must be "credible" and he was "open to talks" on that.
He said he was prepared for an "ample and in-depth discussion
on the budget bill".
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