(Finance) –
For Italy “in the short term the disruption of Russian gas supplies would have a dramatic impact“. This was stated by the Minister of Economy, Daniele Franco to Davos during the session Funding Europe’s economic renewal stressing that the Italian economy proves to be resilient and despite the great risks it faces, businesses and families are resisting. Obviously, they weigh on growth the risks associated with rising energy prices and the consequences related to war in Ukraine.
“The forecasts pointed to a GDP growth of 4.7% this year after 2021 growth of 6.6%. We have revised our estimate downwards to around 3%. Analyzing this data we must bear in mind that the carryover effect is 2.2% and therefore the additional growth must be estimated at less than 1% “.
“In our stability program we have made estimates on the possible impact of an interruption in gas supplies “from Russia” for our country, and several others in the EU in the short term it would be very dramatic, “he warned.” On the other hand we see a resilient economy. Exports are climbing, by 5% in the last quarter, employment is climbing, services and tourism are doing well. If I’m not here big shocks we expect the economy to continue to grow. “Obviously, he concluded, if the situation worsens, the prospects for Italy would get worse.
To the government “we are convinced, and I am personally convinced that public debt levels need to be reduced. It was expected to increase last year and instead we reduced it by 4.5 points of GDP, a similar result is expected this year. I think the rules are important, but if you have a high debt the first concern is the market “.
“Consider suspending another year” the Stability Pact, as proposed by the European Commission “is a wise decisiongiven the uncertainty and possible spending on refugees from Ukraine and energy prices. But it won’t change our policy“, he added.