Italy’s recession-hit economy is a concern and its government should do more to revive it, European Commission President Jean-Claude Juncker said on Tuesday.
Juncker said: “I’m a bit worried to see that the Italian economy keeps on getting worse.
“I would like the Italian authorities to make additional efforts to keep up Italy’s economic growth.’’
Juncker said Italy had “limited” room for expansionary budget policies given its “high public debt,” but “we remain in contact to see how we can proceed on the issue.
He added: “The head of the EU executive, which among other things monitors budget discipline in the bloc, was making statements to the press after a meeting in Rome with Italian Prime Minister, Giuseppe Conte.’’
Italy, the eurozone’s third-largest economy, is the only EU country in a recession.
On Monday, the Organisation for Economic Cooperation and Development said Italy’s economy would shrink by 0.2 per cent in 2019.
A stalling economy makes it harder for Italy’s government to sustain high levels of public debt, standing at over 130 per cent of gross domestic product.
Rome’s populist rulers have bet on higher welfare spending, in defiance of EU budget discipline constraints, to revive the economy.
The strategy has attracted international criticism.
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