Italy’s economy has slipped into recession: gross domestic product (GDP) decreased between October and December 2018, compared to the previous quarter by 0.2 percent. The national statistics reported by Istat according to a first estimate. In the third quarter, the Italian economy had shrunk by 0.1 per cent. For two quarters in a row with a declining economic power, experts speak of a “technical recession”. According to Istat, the Zahlenm in the fourth quarter the worst Figures for five years; the last Time Italy’s economy had shrunk in the year 2014.
Conte called external factors for justification
head of the government, Giuseppe Conte, who had hinted at a possible return of Italy into recession the previous day, made external factors responsible for the decline, including the economic slowdown in important export country, Germany, the trade war between the US and China, as well as the uncertainty around the Brexit.
the export country Italy suffers under these adverse circumstances, is undeniable. However, for a significant part of the difficulties in the highly-indebted country, the government of the populist Five – star movement and the radical right-wing Lega bears the responsibility.
Grillo infrastructure rejects projects from principle,
With your budgetary plans, which provided for a massive new debt, had spooked the government in the fall of the financial markets; the consequence is a striking increase in the interest rates for the government bonds, which rose, in turn, the loans of commercial banks to the company. At the same time, infrastructure Minister Danilo Toninelli blocked a number of already approved and already in construction, major projects such as the train-high-speed line in Val di Susa. The Minister belongs to the protest movement, whose founder, Beppe Grillo promoted the “happy-Minus-growth” and, therefore, infrastructure projects, out of principle, rejects.
76,000 jobs were already destroyed
in view of the budgetary and economic vagaries, it rained on Friday criticism against the populist government. “Now the Executive branch needs to immediately against taxes, and you must begin with the release of the blocked sites”, said the President of the Industrialists ‘ Association, Confindustria, Vincenzo Boccia. This is all the more urgent, as the provisional data from the company’s performance for the January, an even more marked decline in the economy.
harshly with the government, the Opposition went. Ex-Premier Matteo Renzi recalled that under the center-left governments in the economy during 14 quarters of uninterrupted grown, “while in the a few months among the Five-star and the League’s already 76000 jobs were destroyed, and Italy returned to recession”. Antonio Tajani, President of the European Parliament and member of Silvio Berlusconi’s Forza Italia, sees only one solution: “This government needs to be pulled the plug.”
The independent balance sheet, supervision warns against supplementary budget
Deputy Prime Minister Luigi Di Maio, of the Five-star the fault of the previous government: it had lied when it stated that the crisis was overcome. The head of government Conte, in turn, showed confidence that the state budget would unfold for the introduction of a citizens income, as well as the lowering of the retirement age – starting in the second quarter of 2019 and have a positive effect.
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criminal proceedings have been averted by Italy and the EU agree on the budget dispute
The parliamentary balance of supervision does not share this optimism: The effect of both measures on growth to be “irrelevant”, and without corrections to Italy, risking a painful supplementary budget or even a property tax, writes the politically-independent body.
