The EU Forecasts 12% Unemployment in Italy

“Italy’s economy will shrink again this year and unemployment will continue rising in 2014 to reach 12 percent, European Commission forecasts show.

In its fourth recession since 2001, Italy’s gross domestic product will fall 1 percent this year after a 2.2 percent decline in 2012, the Brussels-based commission said today in its latest forecasts. That’s deeper than the 0.5 percent contraction it predicted in November. The economy may grow 0.8 percent in 2014, the commission said.

Prime Minister Mario Monti’s austerity policies, aimed at shrinking the euro area’s second-biggest debt load afterGreece and spurring competitiveness, have been the focal point of the election campaign that ends tomorrow. With the economy shrinking, candidates including Monti have fought over how much to roll the squeeze back….”

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