Between 2007 and 2013 real GDP in Italy contracted by 8,7%, in the euro area by 1,7%. This is what emerges from the analysis of the report on Italy prepared by DG ECFIN which supports the recommendations published yesterday by the EU Commission: recovery of a stronger growth rate, job creation and debt reduction remain national emergencies .
In short, employment has not fallen as much as in other Member States, but working hours have drastically reduced and the unemployment rate has doubled from 6,1% to 12,2%. The labor market reacts late to the improvement in the economic situation. Finally, the public accounts: after having increased by 26 percentage points also due to financial support to Eurozone countries (3,6% of GDP) it will reach its peak this year at 135% of GDP. The risks to the sustainability of the public debt remain medium-low, but the budgetary consolidation action needs to be strengthened again this year.
