Economics
Italy to Use Contingency Fund to Offset Lower Growth: Sole
- This year’s economic output and tax revenue set to disappoint
- Clause in budget law allows for 2 billion euros in extra funds
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Italy will use a contingency fund of 2 billion euros ($2.2 billion) to ensure its structural deficit target is met amid lower-than-forecast economic output and tax revenue, Il Sole 24 Ore reported, without saying where it got the information from.
The newspaper said on Sunday that the government will make use of a clause that was agreed with the European Union and included in this year’s budget law. It requires the use of the extra funds to offset the impact of disappointing growth. The Treasury will this week slash its forecast for 2019 economic growth to 0.1 percent from 1 percent previously, two senior officials told Bloomberg earlier in April.