As previously discussed, looking like deficits high enough for stability and even modest growth, albeit with output and employment at tragically low levels, if they don’t further tighten fiscally.
It didn’t have be this way. They could have increased deficits pro actively vs via austerity.
Also, their ‘automatic fiscal stabilizers’ are very strong and, even if all is left alone, will tend to keep any recovery muted.
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Italian PM under fire over bank crisis
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