The head of Italyâ„¢s central bank Ignazio Visco says political instability in the debt-ridden country will affect Milanâ„¢s recovery from recession.
“This is a critical phase…There is a stability issue, also from a political point of view, which affects the (country’s) ability to pursue opportunities for recovery,” Visco said on Saturday.
Italy started to experience recession after its economy contracted by 0.2 percent in the third quarter of 2011 and by 0.7 percent in the fourth quarter of the same year.
Over the past decade, Italy has been the slowest growing economy in the eurozone as tough austerity measures, spending cuts, and pension changes have stirred serious concerns for many people already grappling with the European countryâ„¢s ailing economy.
In June, Italyâ„¢s Prime Minister Enrico Letta apologized to unemployed Italian young people who must leave the debt-stricken country to find jobs, saying Å“The biggest debt that we are accumulating, by repeating the mistakes of the previous generations, is towards the young people, which is an unforgivable mistake.”
On July 12, Standard & Poor’s (S&P) ratings agency downgraded its credit ratings on the two biggest Italian banks, UniCredit and Intesa Sanpaolo.
On July 9, S&P downgraded Italyâ„¢s sovereign credit rating to BBB from BBB+, with a negative outlook.
Meanwhile, Italyâ„¢s national statistics office said in a report that the number of Italians living in absolute and relative poverty has soared in 2012 with families in southern Italy being hit the hardest.
The report, citing a study conducted by ISTAT, revealed on July 17 that about 4.8 million people, or 8 percent of the population, are grappling with absolute poverty, meaning they are unable to afford the minimum acceptable living standard.
In 2011, 3.4 million people were reported to be living in poverty.
MAM/PR
Republished with permission from: Press TV