Greece Financing – Greek Homes http://greekhomes.info/ Tue, 22 Nov 2022 16:35:57 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://greekhomes.info/wp-content/uploads/2021/04/default.png Greece Financing – Greek Homes http://greekhomes.info/ 32 32 Italy “vulnerable” to debt financing conditions – CE – English http://greekhomes.info/italy-vulnerable-to-debt-financing-conditions-ce-english/ Tue, 22 Nov 2022 15:54:00 +0000 http://greekhomes.info/italy-vulnerable-to-debt-financing-conditions-ce-english/ (ANSA) – ROME, NOVEMBER 22 – Italy along with eight other EU member states are “vulnerable” to medium-term debt financing conditions, the European Commission said on Tuesday. Rome could face “high risks to fiscal sustainability”, it said in its alert mechanism report. “Countries with the highest debt ratios are particularly vulnerable to changes in financing […]]]>

(ANSA) – ROME, NOVEMBER 22 – Italy along with eight other EU member states are “vulnerable” to medium-term debt financing conditions, the European Commission said on Tuesday.

Rome could face “high risks to fiscal sustainability”, it said in its alert mechanism report.

“Countries with the highest debt ratios are particularly vulnerable to changes in financing conditions. In a scenario of a 1 percentage point increase in the growth-interest gap, debt would increase by more than 10 percentage points of GDP by 2023 in Italy, Greece, Spain and Portugal”.

“In Italy, fears related to the high public debt-to-GDP ratio remain unchanged,” the report added.

Debt “remains high” and although it fell to 150.3% of GDP in 2021 “it is expected to remain well above the 2019 level”.

The deficit, reduced to 7.2% in 2012, “should continue to narrow. But yield spreads have deviated “significantly” from the eurozone average, raising funding costs: “Risks to fiscal sustainability are high over the medium term,” according to the Committee Reports.

Italy is one of the ten countries which are again under surveillance by the European Commission for excessive macroeconomic imbalances.

According to the result of the analysis made by the EU executive in the report on the alert mechanism, they will have to be subject to an in-depth examination (in-depth reviews) to assess the development of the situation.

A total of 17 Member States will be subject to in-depth reviews. In addition to Italy, the countries already examined are France, Germany, Greece, the Netherlands, Portugal and Spain. They are now joined by the Czech Republic, the three Baltic countries, Hungary, Luxembourg and Slovakia.

photo: Economic Affairs Commissioner Paolo Gentiloni (ANSA).

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