Italian government debt
The Italian government debt is the public debt owed by the government of Italy to all public and private lenders. As of January 2014[update], the Italian government debt stands at €2.1 trillion (131.1% of GDP).[1] However, Italy has the lowest share of public debt held by non-residents of all eurozone countries and the country's national wealth is four times larger than its public debt.[2]
Contents
History and government action
2010
Italy ran a budget deficit of 4.6% of GDP in 2010. Italian debt was almost 120% of GDP ($2.4 trillion in 2010).[3] This led investors to view Italian debt bonds as a risky asset.[4]
2011
On 15 July and 14 September 2011, Italy's government passed austerity measures meant to save €124 billion.[5][6] On 8 November 2011 the Italian bond yield was 6.74% for 10-year bonds, climbing above the 7% level where the country is thought to lose access to financial markets.[7]
On 11 November 2011, Italian 10-year borrowing costs fell sharply from 7.5% to 6.7% after Italian legislature approved further austerity measures and the formation of an emergency government to replace that of Prime Minister Silvio Berlusconi.[8]
The measures include a pledge to raise €15 billion from real-estate sales over the next three years, a two-year increase in the retirement age to 67 by 2026, opening up closed professions within 12 months and a gradual reduction in government ownership of local services.[4] The interim government expected to put the new laws into practice was led by former European Union Competition Commissioner Mario Monti.[4]
2012
Government debt reached 127.0% of GDP in 2012.[9]
2013
Government debt reached 130.4% of GDP in 2013.[9]
2014
Government debt reached 131.1% of GDP in 2014.[10]
The Italian government has sought to privatise government assets in 2014 in order to reduce debt, including a sale of the Italian government's minority stake of Poste Italiane stock.[1]
In January 2014 the Italian government also agreed to offer citizens a chance to use a new voluntary disclosure scheme to repatriate assets held abroad, often in Swiss banks.[1] Italy has offered several tax amnesties over the past few years, and a tax amnesty in 2012 resulted in €100 billion in assets being declared and made legal at a steeply discounted tax rate.[1] In 2014, the Bank of Italy estimated that Italians held €180 billion in undeclared assets abroad, a figure that was three times as high as in 2004.[1]
See also
Europe:
References
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