Italian Economy Minister Giulio Tremonti said today that he will initiate an in-depth assessment of the country’s economy next week to find out the efficacy of past measures to improve public finances and discuss new measures to spur economic activity.
As Prime Minister Silvio Berlusconi’s centre-right ruling coalition drags its feet over debt reduction and growth stimulating measures, the euro zone’s third largest economy has moved to the centre of the EU economic crisis in recent weeks.
“Our economy needs a check. If some of the things we have done are working we have to communicate them. If there are things to add we will add them,” Tremonti told reporters at the G7 finance ministers’ meeting, being held at the French Mediterranean port city of Marseille.
“I spoke yesterday about this idea with the Bank of Italy’s vice-general director. We must make this inventory together with the economic organisations – OECD, IMF and EU Commission – that have expressed great interest to these developments,” he added.
Italy has built up a debt pile of €1.9 trillion and has recently agreed to austerity measures to balance its budget under mounting pressures from the bond markets. An Italian debt crisis has the possibility of derailing the existing euro zone bailout mechanisms.
The new deficit reduction measures are likely to be approved by the parliament by next amid widespread apprehensions that it may further slowdown an already struggling economy.
The world is yet to come out of the recession, said Mr. Tremonti.
“It is now almost five years since the start of the crisis in 2007 and it is going to continue. The crisis has been managed but I do not think it has been overcome and this is everybody’s opinion,” he said.