Domestic orders for capital goods have reached their highest level in five years. The Bank of Italy’s business surveys indicate that the trend will continue in the coming months. Although output growth has been stronger than expected, it is still slower than in the rest of Europe.
Productivity in industry remained at a standstill in the first half of this year, while in France and Germany the quarterly increase was over 3 per cent. We need to step up the action, just initiated, to overcome the structural constraints impeding Italy’s growth. The aim of the budget for 2007 is to ensure financial stability in the years to come.