Italy’s public debt on rise

As the public debt of Italy, the world’s third biggest, continues to grow exponentially, the European statistics agency has warned that it has reached nearly 134 percent of the country’s gross domestic product in the second quarter of 2014, Press TV reports.

The figure was more than 3 percent over the first quarter of 2014, showing that Italy is on the brink of a socio-economic breakdown.

Media reported that the European Commission may see Italy’s recently passed budget law, which features 18 billion euros in tax cuts, not compatible with the EU’s Growth and Stability Pact.

The European Commission has asked the Italian government for clarifications about its 2015 budget law.

The Brussels-based commission warned Italy that it risks deviating significantly from medium-term budget targets it had agreed with the European Union.

“We have strongly criticized this budget law which won’t help at least economy at all. Quite the contrary, it will introduce new taxes,” Elio Lannutti, President of Adusbef Consumer Association, told Press TV.

“However, the EU bureaucrat should be ashamed of the role they are playing on the side of the banks, undermining people’s livelihood, jobs and prospects of socio-economic development,” he added.

On Friday, Italian Prime Minister Matteo Renzi said he hopes to agree a 2015 budget deal with the European Commission.

Some suspect that the EU and Italy’s top officials only pretend to argue on economic issues, but that when push comes to shove they will just act as one party behind the scenes.

Although official statistics indicate that the unemployment rate in Italy hovers over 12 percent, labor market experts insist that the situation is much more alarming.

Over the past decade, Italy has been the slowest growing economy in the eurozone as tough austerity measures, spending cuts, and pension changes have stirred serious concerns for many people already grappling with the European country’s ailing economy.

SF/NN/HRB