On Friday, the fifth of April 2019, EU Monetary Affairs Commissioner, Pierre Moscovici said ahead of a meeting of eurozone Finance Ministers in Bucharest that the economic condition in Italy has been highly sensitive and requires careful monitoring, remarking the first EU official comment since Italy’s entrance into a trenchant technical recession last month.
Besides, the French EU official had also added that the EU Commission would present an updated estimate on May 7th regarding slowdowns on multiple eurozone economies, in particular in Germany and Italy, while Germany’s slowdown may have been momentary, yet Italy has been in a recession since last month.
In February, the EU Commission had estimated a growth forecast for the Italian economy of 0.2 percent, but, recently Italian political circles had frequently been quoted saying that the coalition in Rome would more likely to reduce its forecast between 0.3 to 0.4 percent for 2019, signaling a foreboding recession risk casting shadows over the Italian economy.
Despite a shrinkage in factory activity and decreased orders ahead of an Italian election, adding further strains over the nation’s tangled economy, French Finance Minister, Bruno Le Maire told that the steep slowdown in Germany and Italy’s recession could have been solid proofs of an immediate reform requirement of euro zone’s monetary union.
Without any steps sooner, the eurozone currency would have been in danger of falling further alongside its economies, added Le Maire.