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In Foreign Affairs

IMF: Italy is failing with reforms

7th February 2019

IMF: Italy is failing with reforms Pin It

The Italian government is failing with the necessary reforms. Especially now that the economic growth of the country will be less than 1 percent on an annual basis in the coming years. The International Monetary Fund (IMF) warns about this in a new report.

Less than a week ago came out that Italy in the end of last year in a recession has landed. The populist government, which took office in Italy on 1 June, is pursuing an expansionary spending policy. Among other things, extra money is being made available for the less fortunate, while the retirement age is also being reduced.

The current coalition expects 1 percent economic growth this year, while the central bank of Italy and the IMF in separate reports do not go beyond 0.6 percent growth for 2019. Lower economic growth makes it more difficult for the government to make agreements with the European Union. The Commission on, inter alia, reducing the budget deficit.

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