Italian public debt hits new record high
Italy's public debt, which is already the third highest in the world, hit a fresh record level in April, the Central Italy reported on Thursday.
The country's debt swelled to €1,609.12 billion ($2,218.67 billion), according to Italian News Agency ANSA. The report came in the wake of calls from the European Union that more be done to straighten Italy's public accounts.
The Italian government sees Italy's debt mountain falling to 105.1% of GDP this year compared to 106.8% last year and dropping below 100% by 2010. The forecasts are contained in the center-left administration's draft DPEF, a key four-year economic and budget planning document. The DPEF forecasts a budget deficit of 2.5% this year, down from 4.4% in 2006.
The 2006 deficit was the highest in 10 years and meant that Italy had breached the European Union's 3% deficit cap for four years running. But the European Union has expressed concern over the DPEF, urging Italy to increase its efforts to consolidate public finances.
The International Monetary Fund has also criticized the DPEF as being “not in line” with its recommendations and failing to provide “what Italy needs.” It called for more money to be spent on cutting the deficit. The Bank of Italy noted in its Thursday report that tax revenues were up 5% or €6.4 billion ($8.8 billion) in the first five months of the year compared to the same period in 2006. (people.com.cn)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.