Falling oil prices could be good for Italy's struggling economy, Economy Minister Pier Carlo Padoan said on Thursday.
The recent drop in the price of crude to below $60 per barrel - the lowest since summer 2009 - "could be good news" for Italy, which is struggling to emerge from its longest and deepest recession since the Second World War, Padoan said. Such prices over a prolonged period could lead to a 0.5% rise in Italian GDP, he added. "In the present climate this is extremely important," the minister said.
Padoan went on to say that there was no risk for Italy from the political situation in Greece, where uncertainty over the election of a new president could trigger early general elections next year and fresh instability within the eurozone.
"It is sufficient to look at the stock-market performance, which I also do every day," he said. Also on Thursday Padoan said that a return to stability of the Russian economy "is in everybody's interests" after the ruble went into free-fall on Tuesday in response to falling oil prices and uncertainty over Ukraine. This also affects the many Italian companies that operate in the country or have strong links there. "Russia is in the midst of a financial crisis, it is important that this be stopped," Padoan said, judging positively measures enacted by Moscow to stabilise the currency.
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