The Mayor warns the growth is stopped 2017 The maneuver is complicated – BBC

Slow Motion before the summer, the economy Italian firm is now, and the worst is that probably his weakness will continue in the autumn. Hopes to register this year an increase of 1% of gross domestic product will become increasingly smaller, the crucial goal of a reduction in public debt already this year becomes more at risk, and it complicates the maneuver does not even slightly budget for 2017, which the government will have to submit within a month and a half. To certify the stop of the economy is the Istat in its monthly economic note. “The Italian economy has stopped the growth phase, conditioned on the demand side by the negative contribution of domestic component, and on the supply side from the fall in the industrial production sector.” Domestic demand seems to have exhausted its lack of incentives, investments are still, as household consumption, while in the manufacturing sector recording a fall in added value. Moreover, it worsens the climate of trust between both companies, fell below the 100 mark for the first time since February 2015, which among consumers, which has decreased by as many as 9 points from January to today. employment even in July marked a setback after four months of growth. “The leading indicator of the economy – said the Mayor – remains negative in July, suggesting the coming months a continuation of the phase of weakness of the Italian economy.”

Manoeuvre 25 billion

the impact of growth less than expected (the government had this year on an increase of the GDP 1%) could have consequences both on the accounts of this year, that of the next. The aim of

reversing the trend of the ratio of debt to GDP, which in 2016 is expected to decrease from 132.6 to 132.4%, also considered crucial by the EU, it becomes more difficult to achieve, although Economy Minister Pier Carlo Padoan, reiterated the commitment over the weekend. As well as by the stopper GDP, debt reduction is hampered by inflation, so far negative, and for which Istat does not provide “significant recoveries” in the coming months. Play favorably, however, the steady growth in tax revenues, which could help keep the deficit under control. In the first seven months, tax revenues rose by nearly 10 billion from last year. In total, the increase was 3.8%, ie 8.9 billion euro, but on a consistent basis (for different methods of payment of the fee Rai and stamp duties) the increase would be 5.1 %. The personal income tax revenue grew by 3.6 billion, the VAT of 4.4 (+ 7.6%). For 2017 the government takes about 25 billion to eliminate the VAT, pensions, incentives to industry, the plan against poverty, investment, support for employment. The coverage should be ensured by the spending review, by a new Voluntary Disclosure and rising deficits that will stop over the 1.8% agreed at the time with the EU.