- Says latest data indicates Q3 GDP contracted slightly
- Export outlook uncertain
- Household and business confidence weak
- Sees high risk of prolonged period of low inflation, creating risk for debt to GDP ratio (as noted in the budget presented to the EU)
- Italian government decision to delay debt cutting goal reasonable given depth of recession
By fair means or foul the Italians managed to hit the EU debt to GDP target but it looks like they’re throwing those attempts to the wind going forward. Another shot against austerity. It’s all well and good not playing by the rules IF your actions produce what you want them to, in this case a jump in growth. If it doesn’t then you’re in double trouble.
