The Bank of Italy told parliament Monday that Italy’s high debt/GDP ratio, the second highest in the eurozone after Greece’s, reduced the wiggle room to cope with future adverse shocks to the economy and public finances.
“The high ratio of public debt to GDP is a serious element of vulnerability: it reduces the fiscal space to cope with possible future adverse shocks; it exposes the country to the risk of tensions in the financial markets; and it increases the cost of debt for the State, and ultimately for households and businesses”, said the head of the BoI’s economics and statistics unit, Sergio Nicoletti Altimari.
He was speaking at a parliamentary hearing on the government’s updated economic and financial plan, the NADEF.
Source: Ansa News Agency