- Luis de Guindos, Spain's Economy Minister
Italy's Economy Minister Pier Carlo Padoan shared an upbeat outlook by saying that the slowdown in the Euro zone's third biggest economy has ended. The Minister added that the government prepares a set of measures for approval in January to spur investment, including fiscal stimulus to prop up small companies. Padoan also said that the country's massive public debt, the second highest in the Euro zone, would start falling in 2016. His positive economic forecast was echoed in statistics data, which showed confidence in the nation's manufacturing sector rose again in December, with the corresponding index climbing to 97.5, up from a revised 96.5 a month ago. Meanwhile, Spanish deflation intensifies, adding to challenges ECB Governor Mario Draghi faces to prevent the Euro zone economy from falling into deflationary spiral. Consumer prices in Spain fell 1.1% on year in December, according to a preliminary data. The index has been in a red territory since July, but this appeared to be the deepest decline so far. When measured on a monthly basis, consumer prices posted a -0.6% drop in the reported month, compared to November. Nevertheless, Spain's Economy Minister Luis de Guindos has recently played down deflationary threat in Spain, saying that the country is not at the risk of falling into deflation. He also added that lower prices have had a positive effect on competitiveness and spending power, which would result in Spain's economic recovery.
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