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Italy does not have 'big imbalances', can come back strong

Monti sees growth returning as soon as euro crisis ends

12 November, 12:59
Italy does not have 'big imbalances', can come back strong (ANSA) - Milan, November 12 - Premier Mario Monti said on Monday that he was upbeat about the Italian economy's long-term prospects because it was fundamentally sound.

"It will be possible for growth to return as soon as the eurozone crisis is solved," Monti said at an event organised by the Financial Times in Milan.

"Italy does not have major imbalances, apart from its national debt-GDP ratio". Monti's emergency government of unelected technocrats has passed painful austerity measures to restore health to the country's public finances and put it on track to balance the budget in structural terms next year.

However, Italy's borrowing have remained high with investors concerned about the risk of the country being hit by contagion from other countries embroiled in the crisis, above all Greece and Spain. Monti has said that his and future governments will have to go further than balancing the budget and take action to reduce Italy's huge public debt, which Eurostat last month said has reached a record high of 126.1% in relation to gross domestic product (GDP).