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Bank of Italy warns on growth as bond sale falters

Canada Goose Outlet ROME (Reuters) The Bank of Italy warned on Tuesday that government plans to cut debt were at risk from weak growth canada goose uk shop as Canada Goose online a lukewarm bond sale threatened to canada goose clearance sale drag the euro zone third canada goose factory sale biggest economy back to the center of the debt crisis. Canada Goose Outlet

Ignazio Visco, deputy director general of the Italian central bank, Canada Goose Outlet said growth was uk canada goose outlet likely to be under 1 percent in 2011 and even uk canada goose weaker in 2012 and warned that market tensions remained high, despite government austerity measures.

canada goose deals problems of economic growth are perceived as a strong limit to the canadian goose jacket ability to rebalance the finances of our country, Visco told a hearing canada goose clearance of the Senate budget committee. canada goose deals

cheap Canada Goose Many analysts expect close to zero growth next year, when austerity will bite in a country seen as too big to bail out if issuing bonds to cope with a 1.9 buy canada goose jacket cheap trillion euro debt burden becomes prohibitively expensive. cheap Canada Goose

buy canada goose jacket cheap At the same time, the government 45.5 billion euro ($65.97 billion) Canada Goose Parka austerity package to balance the budget by 2013 has drawn Canada Goose Jackets widespread criticism for a lack of detail and a virtual absence of reforms to improve growth potential. buy canada goose jacket cheap

canada goose coats Visco remarks came as the European Central Bank canada goose coats returned to the market to buy Italian bonds after an auction of long term BTPs drew a poor response that sent the spread over 10 year German bonds above the symbolically important 300 basis points. canada goose coats

Canada Goose Jackets The 7.74 billion goosefrshop euro bond auction had been seen as a major test of emergency steps taken to stem the spread of the euro zone debt crisis. Market participants canada goose say the ECB has focused on Italy with around 43 billion euros worth of debt purchases since it reactivated its bond buying program earlier this month to halt the spread of the crisis to Italy and Spain. Canada Goose Jackets

canada goose clearance sale Italy slid dangerously close to Canada Goose Online a Greek style meltdown last Canada Goose sale month as a market selloff sent yields on its 10 year bonds soaring cheap Canada Goose to unsustainable levels cheap canada goose uk of more than 6 percent. canada goose clearance sale

The ECB recent intervention has calmed immediate fears of a crisis that could buy canada goose jacket overwhelm the euro zone and brought yields back down to just over 5 percent. But Tuesday weak auction result showed how fragile the situation remains.

canada goose coats on sale Visco said canada goose uk black friday the overall austerity package was consistent with recommendations from the European Central Bank for balancing the budget but the final plan must include measures to help growth in Italy, which has one canada goose black friday sale of the world most sluggish economies. canada goose coats on sale

UNION ANGER The austerity package was passed by parliament in record time as the markets crisis raged earlier this month. But the plans have drawn wide criticism and Prime Minister Silvio Berlusconi has promised changes that are due to be sealed later this month.

Canada Goose Parka However, Italy record as one of the world slowest growing economies over the past decade canada goose coats on sale means that broad skepticism remains over how effective even an amended package will be. Canada Goose Parka

canada goose black friday sale continuous changing of the measures is not a good signal because it shows there is division and indecision in the government and it transmits uncertainty to the markets, said Citigroup analyst Giada Giani. canada goose black friday sale

canada goose don think they get Canada Goose Coats On Sale a balanced budget, especially because growth is falling sharply. We forecast the economy will contract by 0.3 percent next year, she said. canada goose

buy canada goose jacket No detail has been given on how the changes would be funded apart from vague promises of a crackdown on tax evasion. buy canada goose jacket

canada goose clearance The amendments also put back the retirement age of many workers who will no longer be able to count years spent at university or in compulsory military service, even when they have paid contributions canada goose uk outlet for those years. canada goose clearance

Berlusconi, who risked a split with his Northern League coalition partners over the mix of tax hikes and spending cuts, said he was pleased with amendments agreed on Monday, which he said left the overall size of the package unchanged.

Canada Goose sale However, analysts said a lack of detail and the uncertainty surrounding the package meant markets would remain suspicious of Rome ability to control public finances, particularly given the funding gap opened up by the latest amendments. Canada Goose sale

canada goose store is a question mark against how they are going to make the numbers add up now that they have abolished the solidarity tax and reduced the cuts to local government, said UniCredit economist Chiara Corsa. canada goose store

canadian goose jacket Visco call in the Senate for more measures to boost competitiveness and help business reflect concerns about growth expressed by other groups, including Italy main employers federation, Confindustria. canadian goose jacket

But his remarks also underlined how hard it will be to canada goose store control the deficit while encouraging growth.

Canada Goose online public finances, aimed at balancing the budget by 2013, will slow growth but there are no alternatives, Visco told the Senate committee. other scenario would lead to more traumatic results for our country Canada Goose online.