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ITALY: Light economic recovery but partial instability in the banking sector

In the 1st quarter, the GDP increased by 0.4 % q/q further to a rise of private consumption (+0.5 % q/q). The employment rate has been improving since 2015 thanks to the end of the recession, but the high unemployment rate (July ’17: 11.1%) has been hindering an increase of the wage level. The increase of the inflation rate (May ’17: +1,5% a/a) contains the development of the households’ purchasing power (forecast ’17: +0,5%). Even if still high, the consumers’ confidence worsened since the beginning of 2016. In 2016, construction investments (+1.4 %) have grown for the first time since 2006 and accelerated in the 1st quarter of 2017 (+0.6% q/q). The business climate index reached its maximum of the last ten years. The equipment investments could increase by 1.9 % in 2017, after +3.9 % last year. Despite of the exports’ growth (’17: +4.4% expected), the evolution of the trade balance (’17: -0.2%) should still weigh on the GDP growth in 2017 (’17: +1.3%).
Further to the long economic recession, the banking system is facing defaulting credits. The unavoidable government rescue further worsens the credibility of the banking sector and the sustainability of the public finances. Intesa Sanpaolo took over the sound commercial activities of
the failing banks “Veneto Banca” and “Banca Popolare di Vicenza” for one euro, without assuming any risk for the commitments made before the takeover and for the rebalancing costs. The government will pay about 5 billion EUR for the takeover costs and will set aside 12 billion
EUR as guaranties for the risky credits of the two banks.

September 2017

ECSA Chemicals AG
Burgauerstrasse 17
CH-9230 Flawil (Switzerland)
T: +41 71 394 02 30
F: +41 71 394 02 31

Via Luigi Favre 16
CH-6828 Balerna (Switzerland) 
T: +41 91 695 88 00
F: +41 91 695 88 01

ECSA Maintenance AG
Burgauerstrasse 17 
CH-9230 Flawil (Switzerland)
T: +41 71 394 02 30 
F: +41 71 394 02 31

Via Luigi Favre 16 
CH-6828 Balerna (Switzerland) 
T: +41 91 695 88 00
F: +41 91 695 88 02

ECSA Energy SA
Via Luigi Favre 16 
CH-6828 Balerna (Switzerland)
T: +41 91 695 88 00
F: +41 91 695 88 05

ECSA ITALIA Srl Società
con Unico Socio
Via Lavoratori Autobianchi 1 
I-20832 Desio (MB)
(Stabile n. 15 - Polo Tecnologico della Brianza)
T: +39 0362 625 421
F: +39 0362 304 361
P.IVA IT00222470130

Porta Ticino Easy Stop SA
Via San Giorgio 37
CH-6877 Coldrerio
T: +41 91 640 35 50 
F: +41 91 640 35 51

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