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Italy is in recession (The Wonders of Socialism!)
Corriere della Sera ^
| Mario Sensini
Posted on 05/15/2005 2:04:59 PM PDT by a freedom-loving italian
Alarm Grows Over Stagnant Italian Economy ISTAT announces 0.5% fall in GDP for early 2005. Manufacturing reports annual decline of 5.2%. Public sector wages next hurdle for government.
ROME - Italys gross domestic product has fallen for the second quarter running. There was a 0.5% drop between January and March in comparison with the previous quarter, and the year-on-year trend has plummeted from +0.8% at the end of 2004 to -0.2%. Again according to data released yesterday by the ISTAT statistics institute, industrial output fell in March by 5.2% on an annual basis. For economists, it is a technical recession. However for Prime Minister Silvio Berlusconi, who was not expecting such bad news, it is not a recession. But it still means big trouble. This years deficit, which was already under strain, could soar well above 4% merely as a result of lower growth. Paradoxically, this eases Italys problems with the European Union, because recession is considered an eminently valid mitigating factor to justify backsliding on public accounts.
Its a situation that does not encourage optimism, but that is why it is so necessary to react, said Silvio Berlusconi...
(Excerpt) Read more at corriere.it ...
TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: berlusconi; decline; economy; eu; europe; italy; recession
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To: A CA Guy
What will this eventually do to the Euro?
Of course this is no good news for the Euro, but frankly I cannot make any forecast for the future US$/Euro exchange rate as there are too many factors involved here
41
posted on
05/17/2005 5:01:37 AM PDT
by
a freedom-loving italian
(putting Prodi at the head of gov't is like putting Bin Laden at the head of counter-terrorism)
To: Apple Pan Dowdy
42
posted on
05/17/2005 5:04:39 AM PDT
by
wtc911
("I would like at least to know his name.")
To: a freedom-loving italian
When are you coming to the US? NYC is a must of course, for at least three days. Let me know, be glad to show you around.
43
posted on
05/17/2005 5:07:07 AM PDT
by
wtc911
("I would like at least to know his name.")
To: Malesherbes
The Italian people, when economically free, know better than anyone else how to combine quality production with civilized living.
Thank you very much, I really appreciate this remark.
44
posted on
05/17/2005 5:09:40 AM PDT
by
a freedom-loving italian
(putting Prodi at the head of gov't is like putting Bin Laden at the head of counter-terrorism)
To: wtc911
Don't know yet, I've got to plan this with my friends, but thanx anyway!
45
posted on
05/17/2005 5:13:47 AM PDT
by
a freedom-loving italian
(putting Prodi at the head of gov't is like putting Bin Laden at the head of counter-terrorism)
To: a freedom-loving italian
1. So the stability pact causing the low growth or even has any impact on the economic situation in Italy.
As you said this pact is dead given the fact that countries like Germany France Italy perhaps the UK are not able to match the 3% line this year.
2. We will see a deficit about 4% this year in Italy with a overall dept of what 100+% of the GDP and you want even more deficit spending?
3. Which inflation had Italy over the last years after adopting the euro?
4. The great benefit of the Euro is the reduction of the currency risk for the companies. There is only one major risk left ( Dollar) for the European companies and this saves a lot of money and brings stability to investments.
46
posted on
05/17/2005 7:45:59 AM PDT
by
stefan10
To: stefan10
1. Yes, the stability pact did have a depressing impact on the economic situation in Italy. That's because until 2005 we have been forced to comply to the 3% deficit cap while France and Germany have NOT.
2. Maybe. But what I want for sure is an economy which grows, and I want the gov't to be able to do anything in order to achieve this goal.
3. Officially very low, around 2-2.5%. But the true inflation has been much higher, because of the euro.
Look, i think it is silly to argue about that. Just come visit Italy for a while, and you'll see by yourself that prices here have sky-rocketed. Again, even American expats find it impossible to live here BECAUSE OF THE PRICES.
4. Agreed. But at this very moment I can't help considering the euro a tragedy for the Italian economy.
2.5 for a small bottle of water, 4 for a 33cl beer, 50 for a dinner in a restaurant even in small villages, that's simply insane.
47
posted on
05/17/2005 8:23:15 AM PDT
by
a freedom-loving italian
(putting Prodi at the head of gov't is like putting Bin Laden at the head of counter-terrorism)
To: a freedom-loving italian
48
posted on
05/19/2005 8:29:41 AM PDT
by
an italian
(without Victory there is no Survivor...)
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