La sustainability of Italy's accounts would not be at risk, at least in the short term. To say it is the European Commission, in its 2012 report on the sustainability of budgets published today, which specifies, however, that the country will have to follow up on the path of "ambitious recovery measures" undertaken. The Italian public debt, recalls the Commission, is expected at 126,5% of GDP for 2014, an increase compared to 120,7% last year.
In the study by the EU executive we read that “Based on current policies, in the medium term and beyond the debt would follow a trend of decline. But it is necessary a strong determination to avoid slippages on fiscal policies, given that the expected improvement in balances on 2014 is challenging both by international standards and by the history of the country”.
The main objective of our economy, therefore, should be to “resolutely focus on measures to ensure sustainability and reduce debt“, as has already happened with regard to the “significant reforms implemented in the pension sector”, thanks to which the risks of “budgetary spillovers from population aging in the long term” have been limited.
