Italy Warned by EU Over High Public Debt With Spillover Risk
- European Commission says Italy has ‘excessive imbalances’
- Worries expressed over Italian banks’ non-performing loans
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The European Commission warned that Italy faces excessive economic imbalances as the country’s shaky center-left government struggles to control public debt, boost sluggish growth and mend ailing banks.
Troubles including soured bank loans risk spilling into other euro-area countries, the commission said on Wednesday. Italy’s public debt is projected to rise to 133.3 percent of gross domestic product this year from an estimated 132.8 percent in 2016.