ZCZC
BCN-43
EU-EUROZONE-ECONOMY-ITALY
Rome says Brussels ‘failed’ in its Italy economy forecast
MILAN, Nov 8, 2018 (BSS/AFP) – Italy’s finance ministry on Thursday rejected
a European Commission forecast that its deficit would balloon thanks to its
big-spending budget as a “technical failure”.
“We regret to note the Commission’s technical failure,” the ministry said
in a statement, slamming “an inadequate and partial analysis” of the populist
government’s proposed 2019 budget.
According to Brussels, Italy’s deficit will reach 2.9 percent of its gross
domestic product next year, much bigger than the 1.7 percent in its previous
forecast.
Crucially, the EU believes Italy will only grow by a mere 1.2 percent in
2019 while Rome’s 2019 budget is based on an estimate of annual growth of 1.5
percent.
In its Thursday forecast, the Commission said it believed that continued
overspending means Italy’s massive debt will remain unchanged at around 131
percent of GDP over the next two years.
Italian leaders insist a high debt and low growth rate are all the more
reason to kickstart the economy through a spending spree.
The Italian government said that while the Commission’s forecast was in
“sharp contrast” to its own, Rome still wanted “constructive dialogue”.
BSS/AFP/SR/1910 HRS