World Economy

Italy May Cut €2.2t Debt

Italy May Cut  €2.2t Debt Italy May Cut  €2.2t Debt

Italy’s economy minister says the country’s public debt would start falling this year as a share of domestic output after the central bank warned earlier this week the government may fail to meet this goal, Reuters reported. Pier Carlo Padoan said privatization revenues would help Italy cut the €2.2 trillion ($2.5 trillion) debt despite the fact that too low inflation failed to boost nominal growth. “Real gross domestic product is doing its part. Based on current figures we’re at least at 1% but I believe it can go much higher,” Padoan said. “It’s inflation that doesn’t budge ...But privatizations go on ... public debt will fall this year.” Bank of Italy Governor Ignazio Visco warned on Tuesday that Italy’s public debt may not fall this year as targeted. He called for a “careful monitoring of public finances and the implementation of a program of privatizations” to “approach” the debt-to-GDP ratio target of 132.4% this year and ensure the debt comes down significantly in 2017.