Italy's Economy to Contract by 0.5 percent Next Year
Category: Italy Created on Monday, 05 December 2011 05:13 Published Date Written by Stock Market Newspaper Hits: 132
Italian Prime Minister Mario Montito announce a new package of economic measures in the parliament tomorrow.
Monti and its government, who are fighting of a heavy debt crisis in Italy, aims to save approximately 20-25 billion eurosby the new austerity package until 2013.
The new package of economic measures targets to reduce the budget deficit 10-12 billion euros. Luxury car, yacht and private plane owners will have to pay additional "luxury tax" with this new plan.
The two announced Euro-saving packages in recent months in Italy, which is third-largest economy in EuroZone, are not considered enough to catch the stated goal of budget balance by 2013 because of public debt to gross domestic product (GDP) ratio reached 120 percent and the country is in danger of entering a recession.
Organization for Economic Cooperation and Development (OECD) forecasts Italy's economy to contract by 0.5 percent next year.