EU, Gentiloni: differences in Italy’s growth estimate due to consumption and PNRR times

EU Gentiloni differences in Italys growth estimate due to consumption

(Finance) – The European Commissioner for Economy, Paul Gentlemenstated that in economic forecasts for Italybetween the government and the European Commission, “certainly there are some differences“https://www.Finance.it/DettaglioNews/113_2024-11-15_TLB/.”We expect a slightly lower level of growth which derives from various factors, among these the fact that the level of consumption, which here too is recovering , but perhaps a little later than expected”, he explained during the press conference presenting the new economic forecasts.

The fact that the great commitment on PNRR has led in some cases to moving investments forward. It is no coincidence that we predict a better level of growth quite clearly for the 2026because something was moved forward a little in the timing,” he added.

The forecasts of the Commission see an Italian GDP growing by 0.7% in 2024, as in 2023, with investments infrastructural which will offset the slowdown in residential construction. “Investments supported by the PNRR are expected to resume in 2025 and 2026, bringing economic growth to 1.0 and 1.2% respectively,” Gentiloni underlined.

On the weakness of economic growth in Italy, the Commissioner stated that “there are problems. I believe the immediate cure is seriousness in public finances, and I think that the Budget law goes, roughly, in this direction, even if we will give our assessments in the last days of November”https://www.Finance.it/DettaglioNews/113_2024-11-15_TLB/.”Let us remember that in some large European countries, including Italy, in the next two years two and a half years we have a investment reserve to be put on the ground which is gigantic”, he however underlined.

As for the impact of the Super bonus on the Italian accounts, Gentiloni stated that it is “fairly well established, summing up a bit, that overall this measure, although having understandable reasons, went a little out of control and certainly had a more negative impact how positive.”

Gentiloni then announced that the European Commission will present its own judgments on the multi-year budget plans of the EU countries on 26 November in Strasbourg, with a press conference on the decisions for excessive deficit procedures.

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