Italy’s Public Debt at 1.573 Trillion
According to new statistics Italy’s public debt has hit a massive 1.573 Trillion euros. This is 106.4 of GPD, the total size of the economy. The public deficit is also breaching EU Stability and Growth Pact rules, at 4.1% of GDP. The new Prodi government has promised to cut expenses and lower the deficit by 2007. Italy’s economy has hardly grown over the last few years, and is one of the worst performers in the European Union.
In early July, the new center-left government of Romano Prodi drafted a budget reduction plan aimed at bringing the deficit below 3.0 percent of output by 2007, thus meeting its obligations under the European Union Stability and Growth Pact.
Debt should be no higher than 60 percent of gross domestic product (GDP) under the pact’s rules.
On July 7, Italian Finance and Economy Minister Tommaso Padoa-Schioppa said the deficit would measure 4.0 percent of GDP this year before falling to 2.8 percent in 2007 and 2.2 percent in 2008. Padoa-Schioppa also said Italy’s public debt would be brought below 100 percent of GDP in five years.CLICK HERE FOR THE FULL ARTICLE AT EUBusiness.
Administrator @ August 12, 2006