According to the Fitch rating agency, Italy will need at least ten years to reduce its national debt in relation to economic output to the pre-crisis level. As long as it will take until Italy shows a national debt ratio of 135 percent, Fitch said on Friday in a report on the debt rule of the European Union.
For the current year, Fitch expects the Mediterranean country to have a mountain of debt of 160 percent of gross domestic product (GDP). The ceiling set by the EU is 60 percent of GDP. The simulations made clear the difficulties of creating a credible fiscal rule in the EU, explained the rating agency's analysts.
Italy is one of the European countries that the Corona crisis has hit particularly hard. Last year, the third largest economy in the euro zone collapsed by 8,9 percent, making it stronger than ever in the post-war period. For the current year, Italy's Ministry of Finance is now expecting growth of 4,5 percent. Last autumn, an increase of six percent was forecast. (Reuters)