Finance Info -Italy has taken important steps to improve the public finances. But the country's new Government must pursue reform and cutting the debt burden.
It delivered the Organization for economic cooperation and development, OECD, while new Prime Minister Enrico Letta met with European leaders in Brussels.
Letta is currently looking for allies in Europe to focus on growing stronger and reduce pressure on fiscal discipline. "But, the ratio of public debt to GDP nearing 120 percent and debt repayment schedule, making Italy hit by sudden change in financial market sentiment," said the OECD, as reported by the Global Post, Thursday (2/5/2013).
It urged Letta to "consolidate" the structural reforms launched by his predecessor Mario Monti, comes with additional ways to increase growth and productivity, the weakest points of the third largest economy in the euro zone.
"The fiscal measures should concentrate on spending restraint," added the OECD.
The Government earlier estimated the Italy public debt will reach its peak 130.4 percent of GDP this year and began declining after that. EU countries are supposed to keep public debt not exceed 60 percent of GDP.
The Organization estimates that Italy's public deficit would stand at 3.3 percent of GDP this year, and rose to 3.8 percent in 2014, meaning it will still be above the EU limit of 3.0 percent, amounting to.
"Amid the recession and rising unemployment is sometimes hard to see the light at the end of the tunnel. But, I am sure that the commitment to reform the current strategy will generate a better standard of living and more powerful, as well as Italy's economy more dynamic, "said the report quoted Secretary General of the OECD, Angel Gurria.
Finance; Investment; Business; Economics
Finance; Investment; Business; Economics
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