Italy to sell off €20 billion worth of state assets annually to reduce debt
Italy is planning to cut its state debt by gradually selling off state assets, a move which is expected to bring in €15-20 billion annually. The target is to reduce the burden, which is projected to hit 23 per cent of GDP this year, by 20 per cent by 2018. The plan was announced by Italy’s new economy minister, Vittorio Grilli, in an interview with an Italian newspaper. Italy is also expected to revise down its forecast for the economy for 2012 to a contraction of just under 2 per cent, as opposed to the 1.2 per cent shrink previously outlined. Italy’s state budget deficit is relatively low, but the state debt is among the biggest in the eurozone. Some analysts say Italy might soon need foreign assistance to sort out its finances.
Italy is planning to cut its state debt by gradually selling off state assets, a move which is expected to bring in €15-20 billion annually. The target is to reduce the burden, which is projected to hit 23 per cent of GDP this year, by 20 per cent by 2018. The plan was announced by Italy’s new economy minister, Vittorio Grilli, in an interview with an Italian newspaper. Italy is also expected to revise down its forecast for the economy for 2012 to a contraction of just under 2 per cent, as opposed to the 1.2 per cent shrink previously outlined. Italy’s state budget deficit is relatively low, but the state debt is among the biggest in the eurozone. Some analysts say Italy might soon need foreign assistance to sort out its finances.