Beleaguered Italy that is struggling hard to pay off its international debt and increase job opportunities for its people is facing a new problem as its economy has come to a standstill in the third quarter. This setback brings new headache to its new coalition government which is already at loggerheads with European Commission over the expansion budget that it wants to implement to ease economic problems of its people. European Union’s latest figures have shown that economic growth of 19 nations that use the euro currency has slowed down by 0.2 percent which is more than expected as last year it was 0.4 percent.
Growth across all 28 Euro nations has fallen to 0.3 percent from a high of 0.5 percent. Italian PM Guiseppe Conte said that the current pace of his nation’s growth justifies its expansionary budget which will boost its economy by the proposal has been rejected by EU commission as it breaks existing rules. Eurozone chief economist Claus Vistesen stated that though the suggested number is a sobering figure for new government, it will have to agree as Italy needs fiscal stimulus too. Luckily in the midst of this gloom France has reported 0.4 % economic growth in its third quarter due to increase in consumer spending.
Though the figure of 0.4 is more than 0.2 % earned during previous quarter the rate was less than levels predicted by economists so the French government may miss its growth target for 2018 if it does not show significant growth in last quarter. European Commission has announced that economic sentiment across the Eurozone has fallen for 10 months consecutively. Its sentiment measure fell to 109.8 points in October from a level of 110.9 points in September showcasing its biggest drop since March this year. The economic sentiment in Eurozone is reflecting rest of the world that is struggling to function around trade tariffs being imposed on each other by US and China.