Italy’s public debt close to €3 trillion

Italy’s public debt increased by €13.3bn in May compared to April and is approaching €3 trillion – according to the data published by the Italian Central Bank (Banca d’Italia), TASS reports

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Italy has one of the highest levels of public debt in Europe, making its economy vulnerable to market speculations. The interest on servicing the debt is determined by a variable (a spread), which also indicates the difference in value between Italian and German securities. To date, it hovers around 130 points – quite an acceptable indicator.

Moreover, Italy has been unsuccessful for years in reducing its debt-to-GDP ratio, which is just below 140 percent. According to experts, economic growth does not exceed 1 percent.