Italy: Deficit to become one of the highest in eurozone

The European Central Bank (ECB) stated in its economic bulletin on Thursday that Italy will become one of the euro zone countries with the highest deficits in 2021. 

 

"Spain, France, Italy and Slovakia are expected to have the highest deficits, exceeding 7.5%. GDP in 2021." "Based on the assumption of no change in policy, by 2022, the deficit of the 13 member states of the euro zone will remain above the 3% threshold." 

 

It added: ''As long as the health emergency persists and recovery is not self-sufficient, temporary measures must be expanded to avoid cliff edge effects.'' 

 

But it also said that for Belgium, Greece, Spain, France, Italy and Portugal, the European Commission emphasized that “in view of their government debt levels and the high sustainability challenges in the medium term, it is important to ensure that supportive budget measures are taken to maintain medium-term fiscal Sustainability".