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giovedì 7 agosto 2014

Draghi says 'low private investment' drag on Italy GDP

Successful structural reforms have made States 'much' stronger



(ANSA) - Rome, August 7 - A major contributing factor to Italy's weak gross domestic product (GDP) has been "the low level of private investment" in the country, European Central Bank President Mario Draghi said Thursday. And much of that is due to investor "uncertainty about (Italy's) reforms, a very powerful brake that discourages investment," added Draghi. He spoke at a news conference one day after the latest GDP figures confirmed Italy is in its third recession in five years.

Statistical agency Istat said Italian GDP slipped by 0.2% in the second quarter after falling by 0.1% in the first three months of the year. Commenting indirectly on Italy's situation, Draghi said the countries which have successfully implemented structural reforms have tended to be stronger. "The countries that have convincing structural reform programs are doing better, much better, than those who have not done so or have done so inadequately," said Draghi.

Italian Premier Matteo Renzi's government has been pressing several reform measures through parliament, including legal and spending reforms, institutional changes, and a new election law. Draghi urged eurozone countries to intensify efforts at making structural reforms, but said that at the same they must "not undo the progress made in fiscal consolidation," involving debt and deficit reduction. One of the downside risks to the European economy as a whole is insufficient efforts at implementing economic reforms, added Draghi. 

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