Italy’s Matteo Renzi Tries to Keep Calm Amid Banks PANIC as He Says No to Emergency Budget
- Italy’s Matteo Renzi Tries to Keep Calm Amid Banks PANIC as He Says No to Emergency Budget
by http://www.express.co.uk/ , 1 Aug 2016
ITALIAN Prime Minister Matteo Renzi yesterday ruled out the need for any extraordinary budgetary measures this year despite growing concerns Italy stands on a knife edge.
The Italian leader proclaimed the banking stress tests, which placed the country and its banks, including Monte Dei Paschi most at risk, as a success for the country. Renzi said in an interview with Italian daily La Repubblica: “We have lived with the risk of extraordinary budget measures for three years, but I can categorically say there won’t be any in 2016.”
After six months of tumbling shares in Italian banks took the stress tests as a positive claiming retail investors had nothing to fear from Italy’s banks. It had the worst result of all 51 banks tested by the EMA.
Rome is targeting 1.2 percent growth this year but the Bank of Italy and the International Monetary Fund have both said GDP growth is not likely to exceed 1 percent. Last week, Italy’s parliamentary budget office also said GDP would grow less than 1 percent and added 2017 growth would be hurt by the Brexit vote.
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