Martedì, 18 Settembre 2018

Jobless rate rising, but interest costs falling, says report


Rome, March 26 - Unemployment is getting worse in
Italy but lower borrowing costs have reduced interest payments
on the public debt, the government said Tuesday in a fiscal
report that sprinkled a bit of good news in with a lot of bad.
Details from the government's most recent economic and
finance report, including updated economic forecasts, were
released in advance of its final submission to Parliament before
April 10.
The report, known as the DEF, projects that by next year,
the Italian jobless rate will rise as high as 11.8%, above
earlier estimates of 11.4% and the rate of 11.7% recorded in
Unemployment has been climbing dramatically: in 2012,
Italy's national unemployment rate was 10.7%, up from 8.4% in
However, the outgoing government of Premier Mario Monti
says it has saved 5.3 billion euros in interest costs by
boosting international confidence in the Italian economy.
Interest payments on Italian government bonds will amount
of 83.9 billion euros in 2013, below earlier estimates that 2013
interest costs would hit 89.2 billion euros, according to the
That's also below the 86.7 billion euros paid in interest
on Italian paper in 2012.
However, given that the uncertainty surrounding the next
Italian government and the outlook for the economy, interest
rates are again rising and that means Italian payments will jump
to 90.3 billion euros in 2014, according to the new estimates.
No government has yet been established following general
elections one month ago.
Pier Liugi Bersani of the Democratic Party has been given
until Thursday to try to pull together a national government,
since no one party gained a majority in the two houses of
The DEF also includes the Monti government's plan to pay
over two years about 40 billion euros worth of bills to Italian
public administration suppliers, even though this will boost the
country's deficit.
Monti maintains that the European Commission is not opposed
to the notion, even thought it could boost the deficit beyond
levels previously agreed to by EU states.
His government argues that the payments will provide
much-needed economic stimulus to Italy's recession-hit economy,
although it would raise Italy's 2013 budget deficit to 2.9%.
The Italian government has been working with the EC to try
to make the payments, while remaining in line with deficit
Meanwhile, the new economic estimates say that the tax
burden on Italians will reach 44.4% , slightly below previous
forecasts of 45.3% - both well above the 2011 average of 42.6%.
Reflecting the country's ageing population, pension
spending is forecast to reach 5.7 billion euros this year, 16.2%
of Italy's GDP.
That represents a small increase from the 15.9% of GDP in
2012 spending, but the proportion is expected to remain stable
in 2014.

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