West News Wire: According to information released this week by the Bank of Italy, Italy’s public debt increased by about €5 billion ($5.6 billion) in the first five months of the year, reaching a new high in May.
Data showed that after surpassing the €2.800 trillion threshold in April, government debt reached €2.816 trillion ($3.1 trillion) in May. According to the authority, it reflects an increase of €4.8 billion ($5.3 billion) from the previous month.
‘Another historical milestone!’ Given the ongoing growth in interest rates, which has increased the burden of the public debt that Italians are forced to pay with their taxes, this is a major catastrophe for our nation, according to Massimiliano Dona, president of the National Union of Italian Consumers (UNC).
Italy is the most indebted country in the Eurozone after Greece, and one of the most highly indebted nations in the world.
The level of state borrowing is the equivalent of €47,862 ($53,729) per citizen, or about €107,500 ($120,667) per family, according to the head of UNC.
“It is impossible to cut taxes while the public debt is out of control. We have to change its structure by helping low-income households and by raising windfall taxes,” Dona said.
The peak of the Covid-19 pandemic in 2020 coincided with an all-time high for Italy’s debt to gross domestic product (D/GDP) ratio of almost 155%. The Italian economy has subsequently made some progress towards recovery, but as of the final quarter of 2022, the ratio was still one of the highest in the EU at 144%.
