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Italy to have more leeway in public spending

The European Commission said on Wednesday it was ready to accept an Italian request to modify the way public deficits are calculated, which would give Rome more leeway in spending while still respecting EU demands to keep the deficit below 3.0 percent of gross domestic product (GDP).

Italy to have more leeway in public spending
The EC said it was ready to accept Italy's request to modify the way public deficits are calculated. Photo: Daniel Roland/AFP

Italy's government said this was "an important result" since it would give greater flexibility for investments to boost growth in the 2014 budget.

European Commission chief Jose Manuel Barroso told the European Parliament meeting in Strasbourg that exceptions were possible "on a case by case basis" to the current method for calculating deficits.

This would be allowed for national spending on, for example, projects co-financed by the European Union and aimed at structural reforms or trans-European transport networks, Barroso said.

"We've done it!" Italian Prime Minister Enrico Letta wrote on Twitter after Barroso's comments.

The Commission forecasts Italy's deficit will reach 2.9 percent this year but then go down to 2.5 percent in 2014.

Italy has just been taken out of an excessive deficit procedure by the Commission, which could have led to sanctions.

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AUSTRIA

Today in Austria: A round-up of the latest news on Friday

Find out what's going on today in Austria with The Local's short roundup of the news.

Person getting vaccinated
AFP/ALEX HALADA

Extra doses of vaccine to come to Austria

Austria will receive 198,815 additional doses of Biontech Pfizer vaccine doses, after the EU purchased an extra 10 million for member states, Der Standard newspaper reports. Austria had hoped the EU would give it even more extra doses to make up for AstraZeneca delivery problems which means it may fall behind in vaccination this year. 

No Austria-wide lockdown for now, says Kurz

The lockdown in the eastern states of Austria will stay limited to these regions for the time being, Chancellor Kurz  said on Thursday.  He said the country’s intensive care units, showed big differences between regions. States should help each other in the admission of intensive care patients, the Wiener Zeitung newspaper reports. 

Record deficit in Austria 

The pandemic has driven the deficit in Austria  to a record level of 8.9 percent of GDP in 2020. The €33.2 billion missing from the state budget, is the highest deficit since records began in 1954. The national debt ratio also rose in 2020 by 13.4 percent to  83.9 percent of economic output, it reports. Preliminary results from Statistics Austria show government spending rose by 12.6% or €24.4 billion compared to 2019 to a total of €217.4 billion, the Wiener Zeitung newspaper reports. 

Unemployment fell in March

Unemployment fell significantly in March, but is still at a high level. At the end of March, 457,817 people were registered as unemployed or in AMS training, 51,106 fewer than last February and 104,705 fewer than in March 2020. The unemployment rate at the end of March was 9.4%, a decrease of 1.3 percentage points compared to February and 2.9 percentage points compared to March 2020, the Wiener Zietung newspaper reports 

E-moped sharing scheme comes to Vienna

A new e-moped sharing has been available in Vienna since Thursday. The Go Sharing company starts renting its e-mopeds. Initially the fleet will comprise 200 vehicles, by the end of the year 500 of the green-painted mopeds should be on the road, broadcaster ORF reports. 

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