MILAN: Italy's public debt level will reach a peak of 130.4 per cent of gross domestic product ( GDP) this year, according to a long-term budget programme issued on Wednesday that forecasts growth will pick up and debt go down starting from next year.
The programme was adopted by the cabinet but will have to be amended by the next government, even though political parties have so far failed to strike a deal to end a deadlock that has dragged on since inconclusive elections on February 24-25.
It forecasts an economic contraction of 1.3 per cent this year, following by growth of 1.3 per cent in 2014 and 1.4 per cent in 2015.
The public deficit is set to narrow to 2.9 per cent this year, 1.8 per cent in 2014 and 1.5 per cent in 2015. The debt level will rise to a peak of 130.4 per cent this year and then gradually fall to 129 per cent in 2014 and 125.5 per cent in 2015.
Interim Prime Minister Mario Monti underlined that the document takes into account the "particular situation" that Italy has been in since polls in which the centre-left won the most votes but failed to win a parliamentary majority.
"We could define this as a work in progress," Monti told reporters after the cabinet meeting.
The former European commissioner warned Italy faces a major challenge over the next few years and urged any future government "to remain vigilant in terms of public finance discipline".
Italy has to stay under the 3.0-per cent public deficit threshold mandated by the European Union, he said.
indiatimes.com
The programme was adopted by the cabinet but will have to be amended by the next government, even though political parties have so far failed to strike a deal to end a deadlock that has dragged on since inconclusive elections on February 24-25.
It forecasts an economic contraction of 1.3 per cent this year, following by growth of 1.3 per cent in 2014 and 1.4 per cent in 2015.
The public deficit is set to narrow to 2.9 per cent this year, 1.8 per cent in 2014 and 1.5 per cent in 2015. The debt level will rise to a peak of 130.4 per cent this year and then gradually fall to 129 per cent in 2014 and 125.5 per cent in 2015.
Interim Prime Minister Mario Monti underlined that the document takes into account the "particular situation" that Italy has been in since polls in which the centre-left won the most votes but failed to win a parliamentary majority.
"We could define this as a work in progress," Monti told reporters after the cabinet meeting.
The former European commissioner warned Italy faces a major challenge over the next few years and urged any future government "to remain vigilant in terms of public finance discipline".
Italy has to stay under the 3.0-per cent public deficit threshold mandated by the European Union, he said.
indiatimes.com
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