Italy: record for public debt which is close to 3,000 billion euros

Italy's public debt rose to a record level in June, approaching 3,000 billion euros, the central bank of the third economy in the euro zone announced on Friday. Italian debt reached 2,948.5 billion euros, up 30.3 billion over one month, indicates the Bank of Italy in a press release.The Italian debt, which fell below the 2,700 billion mark in November 2021, then continued to increase and has increased by more than 180 billion euros since the arrival of the extreme Prime Minister to her post. right Giorgia Meloni.In June, 'the increase reflects the needs of public administrations (+15.3 billion), the increase in liquid Treasury funds (+13.5 billion), as well as the effect of +spreads+ and issue premiums and reimbursement, the revaluation of securities indexed to inflation and the evolution of exchange rates (+1.4 billion),' explains the Bank of Italy.Italy displays contrasting economic indicators: unemployment is falling, the employment rate is increasing, real wages are increasing - even if they remain below their 2007 level, an almost unique situation among OECD countries - and inflation is lower than the rise in prices in the euro zone (the Bank of Italy expects 1.1% this year).On the other hand, growth remains moderate, at 0.2% in the second quarter. In April, the government lowered its forecast to 1%, then 1.2% in 2025. The Bank of Italy is counting on 0.6% in 2024 then 0.9% in 2025 and 1.1% in 2026.The Italian executive's budgetary room for maneuver is therefore limited and the state's debt continues to grow.At the end of July, the European Union formally launched a procedure for excessive public deficit against Italy and six other member states (France, Belgium, Hungary, Poland, Slovakia and Malta).Last year, these countries exceeded the public deficit limit set at 3% of GDP by the Stability Pact, which also limits debt to 60% of GDP.However, Italy is the country with the largest deficit last year (7.4% of GDP) and its debt is one of the highest in the EU, at 137% of GDP.Countries targeted by disciplinary measures will have to send medium-term plans by September on how to get back on track.The European Commission will then communicate assessments of these plans in November with details on the path to return to fiscal healthSource : Burkina Information Agency