Work, the IMF freezes Italy: “We need 20 years to return to pre-crisis” The reply: not considered reforms – Corriere della Sera

the

Milan , 27 July 2015 – 16:26

     
     
 

The unemployment rate in Italy will remain high in the medium term and it will take 20 years to return to pre-crisis levels. This is what the report says Eurozone International Monetary Fund. The unemployment rate, says the IMF, “is expected to remain higher than during the crisis in Italy, and at the level of the period of crisis in France in the medium term.” The Fund provides instead a decline in the unemployment rate in Spain will remain above 15%. According to IMF forecasts, without “a significant resumption of growth,” Spain will take nearly 10 years, while Italy and Portugal almost 20 years, to reduce the unemployment rate to pre-crisis levels.

The MEF: “Estimates that do not take into account reforms”

The Italian reply, from the Ministry of Economy and Finance, has not made wait, “Estimating the IMF under which it would take 20 years in Italy to bring back employment to pre-crisis levels) is based on a methodology that does not take into account the structural reforms that have already been introduced.” And here “because you do not need 20 years to return to pre-crisis employment.”

Danger “lost generation”

The high rate of youth unemployment in the eurozone could damage the potential of human capital and result in a ” lost generation. ” “Despite recent improvements – it emphasizes the Fund – the unemployment rate remains above 11% in euro and close to 25% in Greece and Spain. The share of long-term unemployment continues to rise, increasing the risk of an erosion of the capacity. ”

Recession

Italy is still emerging from three years of recession emphasizes the IMF confirming that the recovery “continues,” pointing out that among the major economies of the euro, Germany ‘continues to grow slightly above 1.5%, “Spain is” recovering vigorously “, and the activity in Spain” is taken at the beginning of this year. ” Italy must still “increase efficiency” of Pa and civil justice and “improve the flexibility of the labor market” as well as “increase competition in the markets for products and services.” The Fund recommends Italy, in particular, to remove “dualism” of the labor market in terms of layoffs and favor the “wage gap” depending on companies and sectors. Also needed are “active policies” for training and a “reduction of barriers to business,” addressing “the excessive regulatory burden.” To support exports, the Fund believes that Italy should “continue to support the internationalization” of enterprises, especially small and medium-sized enterprises.

July 27, 2015 (modified 27 July 2015 | 21:29)

© ALL RIGHTS RESERVED