Italian Draft Budget Due in Brussels by Mid-October

Italy’s economic growth at 0.2% in 3 months through June, down from 0.3% in the first quarter. The growth is trailing behind euro area as a whole and it is the weakest pace in almost 2 years which could possibly spell trouble for the populist government’s costly projects – lower taxes and more income support for the poor.

Political leaders in Rome will work out a budget after the summer vacations, with tensions among the governing parties expected to flare up.  Italy’s draft budget plan is due in Brussels by mid-October for a review by the European Union.

It is worth noting that Italian unemployment rate rose to 10.9% in June from 10.7% the month before.

Italy has suffered from years of near-stagnation and the European Commission confirmed earlier this month it expects the country to have the slowest growth rate in the 19-nation euro region this year and next.

Source:

Bloomberg, Kevin Costelloe & Alessandro Speciale, 2018-07-31, “Italian Economic Growth Slows to Weakest In Almost Two Years”