World Economy

Italy to Seek New EU Deal

Italy to Seek  New EU Deal Italy to Seek  New EU Deal

Italy is to seek a new deal with the European Union to allow it to kickstart its stalling economy with an expansionary 2017 budget, a government minister said Saturday. Economic Development Minister Carlo Calenda’s comments came three months after Rome was granted “unprecedented” leeway over its 2016 budget and warned by the European Commission that it should be tightening fiscal policy next year, AFP reported. Calenda spoke out after data published on Friday showed the Italian economy failed to grow between the first and second quarters of this year, suggesting a sluggish recovery which began last year has stalled. Analysts say the government will now have to revise downwards its forecasts of growth of 1.2% for this year and 1.4% in 2017, with knock-on effects on its deficit reduction plans. “The treasury will present updated figures in September. I can’t hide the fact that the room for maneuver is tight,” Calenda told Turin daily La Stampa. “We are discussing with Europe how to address the absolute necessity of boosting public and private investment.”