Arab Today, arab today italy to pay pensioners over €20bn in budget blow
Last Updated : GMT 23:59:20
Arab Today, arab today
Arab Today, arab today

Italy to pay pensioners over €2.0bn in budget blow

Arab Today, arab today

Arab Today, arab today Italy to pay pensioners over €2.0bn in budget blow

Italian Prime Minister Matteo Renzi
Rome - AFP

Italy's Prime Minister Matteo Renzi said Monday the government would bite the bullet and pay out over 2.0 billion euros to pensioners following a court order, despite the blow to the debt-laden country's budget.

The new decree will see an average of around 500 euros paid back to some four million retirees for a total bill of 2.18 billion euros ($2.47 billion), Renzi said, to be funded with money originally set aside for measures to ease poverty.

At the start of May, Italy's constitutional court overturned a key plank of the country's pension reforms, leaving the government facing a mammoth adjustment estimated by the premier to total 18 billion euros.

During the financial crisis at the end of 2011, the technocrat government in power at the time had pushed through draconian austerity measures, including a halt in inflation-linked increases for pensions above 1,400 euros a month.

The government will begin with payouts for pensions of under 3,000 euros a month, because tackling the entire sum at once would mean cuts to essential sectors like education and welfare, Renzi said.

"Making all the back-payments would have involved for 2015 resources which would have taken the debt to GDP ratio to 3.6 percent," Finance Minister Pier Carlo Padoan said in a press conference.

"This would have lead to an infringement procedure from the European Union for excessive deficit," he said.

Italy, which only this month emerged from the deepest recession since World War II, had pledged to lower its budget deficit from 3.0 percent to 2.6 percent of GDP in 2015 -- a promise it will now be harder for Renzi to keep.

The bad news was tempered somewhat by the decision by the International Monetary Fund (IMF) to revise up Italy's 2015 growth forecast.

The IMF said the eurozone's third largest economy was now tipped to grow 0.7 percent this year, raising its initial forecast by 0.2 percent and bringing it into line with the government's official forecast.

The organisation also raised its 2016 forecast from 1.1 percent to 1.2 percent.
However, it said more needed to be done to tackle the country's towering unemployment and debt.

"Italy's economy is emerging slowly from a painful recession," it said in a report, following the news this month that the country had finally rebooted its economy after nine months of recession and zero growth in the last quarter of 2014.

"Supported by stronger exports and higher spending by firms and consumers, growth is projected at 0.7 percent this year and 1.2 percent next year," the IMF said.

"But much higher growth is needed to bring down unemployment and debt at a faster pace," it added.

Italy's unemployment rate rose to 13 percent in March, with youth joblessness up to 43.1 percent -- compared to a 22.7 percent rate in the eurozone.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today italy to pay pensioners over €20bn in budget blow Arab Today, arab today italy to pay pensioners over €20bn in budget blow

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 12:06 2017 Sunday ,26 February

Britain banks on robots, AI to boost growth

GMT 12:00 2017 Sunday ,26 February

China to allow more IPOs to attract capital

GMT 06:31 2017 Sunday ,26 February

Consumer prices up in Canada

GMT 06:15 2017 Sunday ,26 February

Tsipras: Era of austerity is over
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday