ITALY

摘要

The government is adamant that it will press ahead with expansionary budget plans for 2016, despite looming conflict with the European Commission over its debt and deficit rules. The budget, which earmarks tax relief and gentler spending cuts, is aimed at kick-starting consumption and investment growth. Sceptics are concerned a relaxation on cash payments could reignite growth in Italy's black economy and hamperthe fight against tax evasion and fraud. The prime minister, though, hopes that this, along with the abolition of a housing tax, will stimulate consumer spending. Private consumption expanded by 0.4% (q-o-q) in Q2, its largest jump in over four years. It could benefit from the improving labour market, following another fall in the unemployment rate to 11.8% in September. The consumer confidence index raced to a 13-year high in October. Retail sales advanced by just 0.3% (m-o-m) in August, however, and consumer activity still has a way to climb after falling into a hole during the debt crisis.