Rome, November 24, 2017 - 08.20
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Combined Report on the Economy and Public Finance

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The public finance framework carved out in July 2008 with the three-year Budget Law is still a valid framework.

The subsequent deterioration of the fundamental ratios (deficit-to-GDP and debt-to-GDP) is not due to economic-policy decisions, but rather to exogenous causes, and in particular, to the economic crisis and the consequent drop in tax revenues.

The situation has been, and is, very similar in the world's other leading nations, both in Europe and beyond, where a relatively strong pick-up in the pace of growth of public spending has also been seen, and continues to be seen, as a result of the financing of massive investments that have been made in almost every country in order to support and bail out banking institutions.

The prospects for the global economy have deteriorated, particularly in recent months. However, at the same time, an increase has also been seen in the efforts of both national governments and supranational organizations in initially tackling the critical elements within the international financial system and then in supporting the economy. Considering such intervention, one can now look with some hope at the possibility of a slowdown in the current phase of the crisis. A slowdown will nonetheless depend on numerous and variable factors: from the recovery of an adequate level of growth at a global level to the conservation of world trade; from the improvement of the employment situation to a new future thrust toward social progress.