From the Bank of Italy Governor's Concluding Remarks at the Ordinary Meeting of Shareholders in Rome - 31 May 2010
" At the beginning of this year it was estimated that the Italian economy would return to the, albeit modest, growth of the ten years preceding the crisis. In the first quarter GDP grew by 0,5 per cent compared with the previous quarter; there was an improvement in the opinions of firms, especially exporters, regarding the performance of orders and their expectations for production. Destocking appeared to have come to an end.
The explosion of the Greek crisis could change the outlook. Some European governments have taken action to reduce their budget deficits.
The Italian Government has reaffirmed the objective of bringing the deficit below the threshold of 3 per cent of GDP by 2012, confirmed the committment to achieving budgetary balance over a longer time horizon, and brought forward the formulation of the adjustment measures for 2011-12. According to the official estimanes the measures recently approved by the Council of Ministries will reduce the baseline budget deficit in 2012 by €24.9 operating costs of the public administration. The package is intended to slow the annual growth in primary current expenditure to below 1 per cent in 2011 and 2012, thereby reducing its ratio to GDP by more than 2 perecentage points. Over the last ten years expenditure expanded at an average annual rate of 4.6 per cent and rose by nearly 6 percentage points in relation to GDP. Careful monitoring of the effects of the package will therefore be needed to ensure the objectives are achieved."
See the entire documents at: http://www.bancaditalia.it/interventi/integov/2010/cf_09/encf_09/en_cf_2009.pdf
" At the beginning of this year it was estimated that the Italian economy would return to the, albeit modest, growth of the ten years preceding the crisis. In the first quarter GDP grew by 0,5 per cent compared with the previous quarter; there was an improvement in the opinions of firms, especially exporters, regarding the performance of orders and their expectations for production. Destocking appeared to have come to an end.
The explosion of the Greek crisis could change the outlook. Some European governments have taken action to reduce their budget deficits.
The Italian Government has reaffirmed the objective of bringing the deficit below the threshold of 3 per cent of GDP by 2012, confirmed the committment to achieving budgetary balance over a longer time horizon, and brought forward the formulation of the adjustment measures for 2011-12. According to the official estimanes the measures recently approved by the Council of Ministries will reduce the baseline budget deficit in 2012 by €24.9 operating costs of the public administration. The package is intended to slow the annual growth in primary current expenditure to below 1 per cent in 2011 and 2012, thereby reducing its ratio to GDP by more than 2 perecentage points. Over the last ten years expenditure expanded at an average annual rate of 4.6 per cent and rose by nearly 6 percentage points in relation to GDP. Careful monitoring of the effects of the package will therefore be needed to ensure the objectives are achieved."
See the entire documents at: http://www.bancaditalia.it/interventi/integov/2010/cf_09/encf_09/en_cf_2009.pdf
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