The Brief: the political turmoil in Italy, may indeed have consequences for the country's economy. The question is: how far reaching ?
ADVERTISEMENTThe political turmoil in Italy, may indeed have consequences for the country's economy. The question is: how far reaching ?
According to the financial newspaper Il Sole 24 Ore, Italy's political uncertainty will over two years cost the country an extra 5 billion euros in interest on its debt.
A public debt that is already colossal; exceeding 2.3 trillion euros, 134 per cent of Italy's Gross Domestic Product.
After Greece, Italy's debt is the largest in the euro zone in proportion to its output.
The country's economy has stalled. Despite margin growth in the first quarter of the year, between April and June it stagnated.
The vice-prime minister and leader of Italy’s far-right League party, Matteo Salvini, wants to boost the economy. He promises that, if the country goes to the polls and his party wins, he'll give Italy 50 billion euros to provoke a "shock" fiscal stimulus.
A promise that is hard to square with demands by the European Commission for a 2020 budget deficit that will not rise above 2.04% of the GDP.
