4 per cent of gdp ; discretionary policies did not contribute to the increase. 2 the deficit of the euro area as a whole more than tripled, rising to 6. 3 per cent. in 2010 the deficit declined to 4. 6 per cent in italy, while in the euro area it remained unchanged according to european commission estimates. the government ’ s management of the accounts was facilitated by the fact that the solidity of the italian banking system did not require significant aid to be charged to the public budget. italy ’ s public debt, already very high, rose again. its management was prudent ; the average residual maturity was lengthened progressively, notwithstanding a context that remained uncertain and volatile. the financial condition of firms and households is solid on the whole. savers ’ propensity to invest in high - risk financial instruments is low ; debt is limited, although it is concentrated in variable - rate liabilities, which are inherently riskier. the italian economy ’ s problem – it is well worth recalling – is the structural difficulty of growth. the arduous task of economic policy is to change this situation while at the same time reducing the ratio of public debt to gdp. to rebuild a solid primary surplus rapidly and not to elude the need to take measures that structurally support growth : this is the challenge. raising the tax rates is out of the question : it would jeopardize the objective of growth and penalize honest taxpayers unbearably ; indeed, the rates ought to be gradually lowered as headway is made in reducing tax evasion and avoidance. the only option is to control spending, but with a selective approach that distinguishes between what fosters growth and what impedes it. wise political choices must necessarily be based on a detailed assessment of the effects, including the macroeconomic effects, of every expenditure item. the more attentive multilateral surveillance of the sustainability of public budgets envisaged by the new pact is not to be feared ; it can help us. the reforms already carried out, especially the pension reform, put us among the countries that require a smaller correction of budget balances to ensure long - run stability. the new european rule for debt reduction would not be a much tighter constraint for us than the one already imposed by the existing rule on structural budget balance. it is estimated that see britta hamburg, sandro momigliano, bernhard manzke and stefano siviero, “ the reaction of fiscal policy to the crisis in italy

ignazio visco : statement - meeting of the development committee statement by mr ignazio visco, governor of the bank of italy and governor of the constituency of albania, greece, italy, malta, portugal, san marino and timor - leste, at the 103rd meeting ( virtual ) of the development committee ( joint ministerial committee of the boards of governors of the bank and the fund on the transfer of real resources to developing countries ), washington dc, 9 april 2021. * * * over a year ago, the world was hit by an exceptional and unexpected shock. the covid - 19 pandemic triggered a profound economic crisis that rapidly became global, causing an unprecedented fall in per capita incomes and an increase in food insecurity, poverty, and inequality — particularly in the poorest countries. since the pandemic ’ s outbreak, uncertainty has been curtailing consumption and investment, dampening productivity and potential growth. monetary and fiscal policies have helped contain the negative impact of the crisis. today the economic outlook seems to be improving at last, thanks also to the rollout of vaccines made possible by exceptional achievements and cooperation in the scientific research community. however, the recovery is still fragile, subject to a large degree of uncertainty and downside risks. delays in the distribution of vaccines, limited fiscal space, high indebtedness, and vulnerability to undesired capital flow volatility could impinge on many emerging and developing economies. granting equitable and timely access to safe, effective and affordable vaccines must remain a priority. as long as the virus continues to spread uncontrollably in any part of the world, no country will be safe. the global pandemic requires a global response, involving stronger multilateral cooperation, increased funding, and laying the foundations for preparedness and resilience. we praise the world bank group ( w bg ) management and staff for their hard work in building a rapid emergency health response, and we urge them to persevere in close coordination with covax, gavi, and other multilateral development banks in helping countries purchase and deploy covid - 19 vaccines. national vaccination programs are being rolled out based on the readiness assessments prepared by the w bg and the w ho, which also provide indications on where to channel resources to address weaknesses in national health systems. such efforts may be impeded by the uncertainty surrounding vaccine availability. we encourage ifc and miga to play a galvanizing, entrepreneur