Italy is among the seven Eurozone countries that “stand out for having recorded increases of unemployment rate particularly conspicuous and persistent since the beginning of the crisis”. The other six are Ireland, Greece, Spain, Cyprus, Portugal and Slovenia. The European Central Bank writes it in its latest monthly bulletin, specifying that “even the rates of starting work recorded substantial decreases in Italy, Portugal and Slovakia”.
In recent months, moreover, Euroland has witnessed a sharp decline in the general climate of trust, notes the ECB citing the Economic Sentiment Indicator of the European Commission, which monitors industry, services, construction and retail trade. The trend involved all countries between May and September, but among the largest economies, "Italy and Germany recorded the greatest declines, followed by France". By contrast, in Spain and the Netherlands the trend was less accentuated.
as to conjuncture across the currency area, the central institute underlines that "the economic survey data available up to September confirm the weakening of the growth trend, while remaining consistent with a modest economic expansion in the second half of the year". However, "downside risks" prevail, therefore "it is necessary to carefully follow the main factors and hypotheses" on which expectations for 2015 are based. The monetary institution therefore appears less certain of its Forecasts, which could undergo further cuts at the end of the year.
“The recent weakening of the growth momentum, together with the sharpening of geopolitical risks – continues the bulletin – could have repercussions on the climate of confidence and above all on private investments. Furthermore, there may be insufficient progress on the implementation front structural reforms in the countries of the area”. For this reason it is crucial that some countries of the euro area "give impetus to the legislative and implementation process of structural reforms as regards the markets for goods and services and labor, as well as interventions aimed at improving the environment in which businesses operate ”.
Finally, the Central Bank reiterates that the directorate is "unanimous in its determination" to resort to other extraordinary measures of monetary policy if it were "necessary to address the risks associated with an excessively prolonged period of low inflation". The ECB aims for an inflation rate that is lower but close to 2%, while today in the euro area the figure stands at around 0,3%.
