Latest news with #GovernmentofItaly
Yahoo
23-05-2025
- Business
- Yahoo
Italy's outlook improves to positive at Moody's
-- Moody's Ratings has revised the outlook for the Government of Italy from stable to positive today, while simultaneously confirming the country's long-term issuer and senior unsecured ratings at Baa3. The foreign currency senior unsecured MTN programme and shelf ratings have also been confirmed at (P)Baa3. The local currency commercial paper rating has been affirmed at Prime-3, and the foreign currency other short-term programme rating has been affirmed at (P)Prime-3. The positive outlook change is due to a better-than-anticipated fiscal performance in 2024 and a stable domestic political environment, which increase the chances of fiscal metrics continuing to improve in line with the government's medium-term fiscal-structural plan. The positive outlook is also supported by a strong labor market, healthy household and corporate balance sheets, and a robust banking sector. Expected improvements in the net international investment position are likely to support economic resilience and reduce Italy's susceptibility to event risk. The Baa3 ratings affirmation takes into account Italy's large economy and effective institutions and governance relative to rating peers. Italy's large and wealthy economy, its effective policymaking and institutional capacity, results in a high degree of economic resilience. However, the affirmation also acknowledges Italy's high debt burden which, along with a gradual weakening debt affordability and structural challenges related to population ageing, remains a constraint on its credit profile. Italy's long-term local and foreign-currency bond country ceilings remain unchanged at Aa3. This is typical for euro area countries, reflecting benefits from the euro area's strong common institutional, legal, and regulatory framework, as well as liquidity support and other crisis management mechanisms. In 2024, Italy's fiscal outcome was better than expected, with a deficit at 3.4% of GDP compared with 3.8% budgeted. The main driver of the better fiscal outcome was a decrease in expenditures, helped by strong revenue growth mainly from personal income and other taxes. Domestic political stability increases the likelihood that the government will continue to narrow the deficits and achieve growing primary surpluses. For 2025 and 2026, revenue growth is expected to align with nominal GDP growth, with direct and indirect taxes supported by the robust labor market and nominal wage growth. Expenditure growth will mainly be driven by increased capital spending under the Recovery and Resilience Facility (RRF), while current spending will increase moderately due to public sector wage increases. The fiscal deficit is projected to decline further, to just under 3.0% of GDP in 2026, as widening primary surpluses offset gradually increasing interest payments. Italy's debt affordability indicators will remain strong relative to similarly-rated sovereigns and to Italy's own history. Interest payments-to-revenue will approach 9.5% by 2030, up from 8.2% in 2024. Italy's debt burden is expected to increase in 2025 and 2026 due to so-called stock-flow adjustments of around 2% of GDP per year related to the superbonus. Government debt is expected to reach 138.4% of GDP in 2026 and 2027, up from 135.3% last year. From 2028 onwards, sustained primary surpluses should put the debt burden on a gradual declining trend. A range of labor market indicators point to enhanced economic resilience to potential future shocks. The unemployment rate was 6% in March 2025 and is expected to remain around this level in the coming years as employment will continue to grow faster than the labor force, reflecting a falling working-age population. In general, private sector debt is relatively low, an important support factor for economic resilience. Total credit to households and non-financial corporates was around 95% of GDP in 2024, compared to 158% for the euro area as a whole. A financially sound banking sector also supports economic resilience. Italian banks demonstrate strong capitalization, improved profitability, ample liquidity, and strong asset quality. The steady improvement in the banking sector's asset quality has been facilitated by the government's Garanzia sulla Cartolarizzazione delle Sofferenze (GACS) guarantee program, at the expense of higher contingent liabilities worth 0.4% of GDP as of end-2024. Moreover, improvements in external liquidity support Italy's shock absorption capacity. The country's current account balance improved to 1.1% of GDP in 2024, from 0.1% in 2023, as the effects from the energy price shock dissipated, and the competitiveness position of Italian exporters improved relative to large euro area peers. The affirmation of the Baa3 ratings takes into account levels of economic as well as institutions and governance strength that are stronger than those of most rating peers. Italy has a large and wealthy economy which, combined with solid policy effectiveness and institutional capacity, results in a high degree of economic resilience. Italy's rating also takes into account credit support from the ECB's credible commitment to use all available tools to respond to sharp rises in interest rates that are not explained by a country's fundamentals. This limits the sovereign's exposure to very high levels of liquidity stress. Italy's CIS-3 indicates that ESG considerations have a limited impact on the current rating, with potential for greater negative impact over time. This reflects high exposure to social risks and overall robust governance, which supports a general strong capacity to respond to shocks. Faster fiscal consolidation than currently assumed, leading to a lower debt burden than in current projections would be positive, particularly if efficiency of the tax system increased. Continued implementation of structural reforms after the end of the National Recovery and Resilience Plan period that prospectively lift Italy's low potential growth rate by starting to address rigidities in the labor market and improve the business environment would also support a higher rating. Given the positive outlook, a rating downgrade is unlikely in the foreseeable future. However, worse-than-expected fiscal outcomes that lead to a higher debt burden than in the baseline scenario could move the outlook back to stable. Signs of lack of tangible reform momentum could also lead to a return to a stable outlook. Although not the baseline assumption, an escalation of the war in Ukraine involving NATO members would exert downward rating pressure. 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Jordan News
15-05-2025
- Business
- Jordan News
Cabinet Approves €112 Million in Strategic Projects with Italy and Global Partners - Jordan News
Cabinet Approves €112 Million in Strategic Projects with Italy and Global Partners The Cabinet on Wednesday approved a key agreement with the Government of Italy and a financial agreement with the Italian Development Bank to support the National Water Carrier Project. The agreement includes a soft loan worth €50 million and a €2 million grant. اضافة اعلان This move is part of the Kingdom's strategic push to secure long-term water sustainability. The funding will help advance the Aqaba-Amman National Water Carrier a flagship infrastructure project that will supply 300 million cubic meters of desalinated drinking water annually. The project is central to the nation's response to its severe water scarcity and aims to boost supply across all governorates. The initiative is a pillar of the Economic Modernization Vision and represents the most ambitious national effort yet to confront water poverty head-on. In parallel, the Cabinet approved an amended agreement to move forward with the Northeast Balqa Wastewater Project, backed by €60 million in funding from the French Development Agency. The project will replace the existing Baqaa treatment plant with a new, state-of-the-art facility located 2 km from the King Talal Dam. It will also eliminate the Ain Al-Basha station, streamlining operations with a gravity-fed pipeline to the new site. The new plant will significantly improve sanitation infrastructure and environmental outcomes in the region. With an initial treatment capacity of 36,000 cubic meters per day expandable to 54,000 the project is designed to grow with demand. All required environmental, technical, and regulatory approvals have been secured. Tendering has been split into two packages, with both now through the prequalification and bid-opening phases. The project is moving toward contract awarding. The Cabinet also gave the green light to a new food security and inclusive growth project, developed in partnership with the Italian government. The program aims to empower small farmers, improve local food production quality, and promote sustainable agricultural systems. It aligns with the Economic Modernization Vision's high-value industries pillar and supports the national food security strategy (2021–2030), the Sustainable Development Agenda 2030, and other national plans. Key interventions include: * Technical and financial support to rural farmers to enhance productivity and quality * Training on modern farming techniques, business skills, and sustainability * Introduction of agricultural machinery to reduce labor intensity * Empowering rural women through small-scale food manufacturing initiatives * Establishing cold storage and waste processing units to reduce loss and improve quality * Expanding market access for smallholder farmers * Promoting circular practices and efficient resource use to minimize environmental impact The program targets smallholders, rural women, seasonal farmworkers, and members of agricultural cooperatives aiming to boost job creation, reduce poverty, and strengthen rural communities against economic and climate challenges. In the environmental space, the Cabinet approved a partnership with the Global Environment Facility (GEF) to launch Jordan's Circular Solutions Project. The initiative will align with global strategies to combat plastic pollution by banning certain single-use products, promoting sustainable packaging, and supporting SMEs developing eco-friendly packaging solutions. It will also push for higher recycled content in plastic products in line with global standards. The project will focus on environmentally impacted cities and will run for 60 months, beginning at the end of June 2025 and concluding in 2030. The Cabinet further approved an agreement with the European Union for the "Partnership Implementation Facility – Phase II" program, aimed at enhancing public sector effectiveness in executing key reform and partnership priorities with the EU. It will also support policy development in areas like green and digital economy growth and defense cooperation with the Jordan Armed Forces. To strengthen exports, the Cabinet extended the 75% tariff exemption on horticultural exports through December 31, 2025. This aims to sustain agricultural operations, protect jobs, and enhance Jordan's global market competitiveness. In support of investment, the Cabinet also extended special incentives granted to the Abdali Investment & Development Project for an additional two years. The goal is to accelerate Phase II implementation and attract investors to capitalize on the project's growing potential. Work on Phase II infrastructure began in early 2025. These exemptions will apply to necessary imported goods and services not available locally, provided they meet Jordanian standards, and are subject to Customs Department oversight. On the tax front, the Cabinet approved the settlement of 803 outstanding cases between taxpayers and the Income and Sales Tax Department part of broader efforts to ease the burden on businesses and citizens, encourage compliance, and improve the business climate. To boost employment and entrepreneurship, the Cabinet also approved two agreements with the German government, via the KfW Development Bank, to launch the "Employment Through Entrepreneurship" program. The initiative will introduce a new financing window under the Industrial Development Fund to increase access to capital for SMEs, especially women-led businesses, and support job creation. The program offers investment grants that support business growth and sustainable employment in line with the Economic Modernization Vision. The Cabinet also approved a draft regulation to license domestic cleaning service companies, referring it to the Legislation and Opinion Bureau for processing. This comes following amendments to the Labor Law requiring regulations to organize all aspects of hiring and managing domestic workers, including licensing conditions and ministry oversight. The new regulation aims to regulate the sector and reduce violations. On the international cooperation front, the Cabinet approved a framework agreement with the Republic of Malta to establish a Joint Economic Committee, along with four Memoranda of Understanding in the fields of water, energy, tourism, and archiving. In other decisions, the Cabinet appointed Omar Malhas as Chairman of the Social Security Investment Fund and accepted the resignation of Bilal Al-Hafnawi from the Board of Commissioners of the Telecommunications Regulatory Commission. Petra
Zawya
04-04-2025
- General
- Zawya
United Nations World Food Programme (WFP) and Italy partner to expand home-grown school feeding and resilience interventions in Malawi
The United Nations World Food Programme (WFP) welcomes a contribution of €4 million from the Government of Italy to expand the Home-Grown School Feeding programme and support climate-smart agriculture and sustainable school meals by connecting schools with local farmers in Malawi's Chikwawa District. The funding will enable WFP to provide daily nutritious meals to 20,800 children in seventeen primary schools across Chikwawa and supports the national school feeding programme reaching over 800,000 children across Malawi. By sourcing ingredients locally, the initiative creates stable market opportunities for smallholder farmers - especially women - helping them increase production and income, while directly contributing to children's well-being. WFP Malawi Country Director ad interim, Simon Denhere, said the support from the Government of Italy will drive lasting impact by integrating food security, education, and livelihoods. 'This initiative goes beyond school meals; it strengthens entire communities. By linking smallholder farmers to schools and equipping them with resilience practices, we are improving children's nutrition while helping communities recover from weather related shocks and to prepare for the future,' said Denhere. "This partnership is a game-changer for Malawi, linking nutritious school meals to improved attendance and academic success, while empowering local farmers and enhancing community food security," said Maureen Maguza Tembo, Deputy Director of School Health, Nutrition and HIV/AIDS in the Ministry of Education. Beyond school feeding, the initiative strengthens smallholder farmers' resilience by improving access to weather resistant crops, promoting sustainable farming techniques, and expanding irrigation and financial services. These efforts help farming communities increase productivity and better withstand shocks. The Ministry of Agriculture, Ministry of Education, WFP, and Save the Children will jointly implement the project in Chikwawa District, with Save the Children and the District Council leading field interventions. "Investing in school feeding and agriculture lays the foundation for lasting benefits for children, farmers, and the broader economy, fostering self-reliance and stability," said H.E. Enrico de Agostini, Ambassador of Italy to Malawi and Zambia. Malawi continues to experience climate shocks, including the recent El Niño-induced drought, making recovery efforts essential for families and communities. 'Smallholder farmers are the backbone of our agricultural sector, yet they face numerous challenges, including limited access to markets, inputs, and climate-related shocks,' said Geoffrey Mamba, Principal Secretary responsible for Irrigation in the Ministry of Agriculture. 'This initiative will enhance smallholder farmers' productivity and market access, particularly for women farmers, by integrating them into the school feeding system.' The contribution was announced today by representatives from the Government of Italy, the Ministry of Agriculture, and the Ministry of Education. Since 1999, WFP has supported school feeding in Malawi, currently reaching approximately 837,500 children across 778 schools. In addition to school feeding, WFP implements resilience-building projects in four districts in southern Malawi, targeting 57,914 households with initiatives that strengthen livelihoods, enhance agricultural productivity, and help communities withstand climate-related shocks. Distributed by APO Group on behalf of World Food Programme (WFP).
Jordan Times
29-01-2025
- Health
- Jordan Times
UNFPA, Italy partner to enhance health services for refugees, vulnerable communities in Jordan
The project aligns with Jordan's national response plans and the Sustainable Development Goals (Photo courtesy of UNFPA) AMMAN — The United Nations Population Fund in Jordan (UNFPA), with support from the Government of Italy, will provide comprehensive Gender-Based Violence (GBV) and Sexual and Reproductive Health (SRH) services to Syrian refugees and vulnerable populations in Azraq Refugee Camp and Azraq City in Zarqa Governorate. The EUR 1.5 million contribution from the Government of Italy will support UNFPA to deliver essential healthcare and protection services to women, girls, and persons with disabilities. The project integrates GBV and SRH interventions to provide life-saving care while empowering communities to build resilience and social cohesion, according to a statement for The Jordan Times. "Italy remains deeply committed to supporting vulnerable populations in Jordan. This partnership with UNFPA reflects our shared vision to ensure access to essential health and protection services for those most in need. Together, we are building a future where women and girls can live free from violence and with access to the care they deserve," stated Luciano Pezzotti, Italian Ambassador to Jordan, highlighting the significance of this initiative. Jordan has been hosting over 659,000 registered Syrian refugees, with women and girls comprising almost half this population. This has resulted in an increased need for accessible and integrated services. This project aims to address this by providing specialised GBV response services, strengthening SRH care, and delivering cash assistance to GBV survivors. Additionally, it will promote gender equality, positive social norms, and sustainable development in host communities through community outreach and capacity-building, according to the statement. "This collaboration with the Government of Italy is very critical to address the pressing needs of Syrian refugees and vulnerable communities in Jordan. By integrating GBV and SRH services, we provide immediate relief while fostering resilience and sustainable development. Through our combined endeavors, women and girls will be able to restore their rights to health and dignified life,' said Himyar Abdulmoghni, UNFPA Representative in Jordan. The project aligns with Jordan's national response plans and the Sustainable Development Goals, particularly SDG 3 on good health and well-being and SDG 5 on gender equality. By addressing these critical areas, the initiative aims to ensure no one is left behind and to create a safer, healthier, and more equitable future for all, the statement said.
Zawya
29-01-2025
- Politics
- Zawya
Ethiopia: Government of Italy, United Nations Office for Project Services (UNOPS) partner to enhance access to inclusive, quality education
UNOPS and the Government of Italy have signed a €4.2 million agreement to construct primary schools in Ethiopia's Central Ethiopia and Oromia regions. This initiative is expected to directly impact over 4,000 students and their families, fostering socio-economic development and creating brighter futures for underserved communities. The signing ceremony took place in the presence of H.E. Prof. Berhanu Nega, Minister of Education of Ethiopia, and H.E. Anna Maria Bernini, Minister of University and Research of Italy. The project targets the Gurage Zone in the Central Ethiopia Region near the town of Wolkite and the West Shewa Zone in the Oromia Region, near the town of Ambo. These areas, which have faced significant development challenges, will benefit from improved access to quality education and essential infrastructure. Aligned with Sustainable Development Goal 4 (SDG 4)—ensuring inclusive and equitable quality education and promoting lifelong learning opportunities—the project will expand access to education for out-of-school children in these regions. Through a climate-resilient infrastructure, the project will construct modern primary school facilities equipped with classrooms, libraries, and administrative spaces; and install WASH facilities to safeguard the health and well-being of students and staff. The project will also, improve transportation and technology to overcome geographic barriers and bring education closer to marginalized communities and recruit, train, and deploy qualified teachers to ensure high-quality education. H.E. Amb. Agostino Palese, Italian Ambassador to Ethiopia, at the event said, 'This initiative highlights Italy's steadfast commitment to fostering sustainable and inclusive development in Ethiopia and ensure communities in the country benefit from peace dividends. By investing in education, particularly in regions like Gurage Zone and West Shewa Zone, we aim to empower communities, bridge inequalities, and build a foundation for a brighter future. Education is a catalyst for socio-economic transformation, and we are proud to partner with UNOPS in realizing this shared vision for Ethiopia's youth and future.' Underscoring the project's impact, Ms. Worknesh Mekonnen, Director of the Horn of Africa Multi-Country Office of UNOPS, said, "This project demonstrates the strong commitment of the Government of Italy to reducing disparities and promoting inclusive development. It marks a significant milestone in our efforts to empower communities through education. By investing in these regions, we aim to contribute to breaking the cycle of poverty and create opportunities for the next generations." This initiative represents a major step in addressing educational challenges in Ethiopia, ensuring that more children have access to a quality learning environment and contributing to the country's long-term development. Distributed by APO Group on behalf of United Nations - Ethiopia.
