European Commission Vice
President for the Euro Valdis Dombrovskis told the European
Parliament Monday that a rise in Italy's deficit had brought
more instability.
"Raising the deficit instead of cutting it has led to an
increase in instability, interest rates, a lowering of
confidence, it has had a negative impact on investments and
therefore, as a result, it is not surprising that the slowdown
of the economy is the most accentuated of all and that growth is
the slowest" (in the EU), he said.
Italy is running a deficit of a projected 2.04% of GDP this
year to fund flagship policies such as a basic income and a
'quota 100' pension reform.
The economy dropped into recession in the second half of 2018
with two consecutive quarters of negative growth, and most
growth forecasts this year are 0.1-0.2%.
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