Italy's Fazio on the prospects for the economy

In the speech 'The banking industry and the prospects for the economy' given on 8 July Antonio Fazio of the Bank of Italy said in the last three years the containment of the budget deficit has been entrusted mainly to one-off measures, which are useful in a period of transition and sluggish economic growth; it is now necessary to return to a lasting structural reduction of the gap between expenditure and revenue.

"Over the past three years the European banking and financial system has managed to

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