OECD: market contagion hasn't spread to Italy & Spain But decisive action needed on Slovenia, Chief Economist says

(ANSAmed) - ROME, MARCH 28 - ''Italy and Spain have solid foundations and aren't a cause for concern, OECD Chief Economist Pier Carlo Padoan told ANSA, commenting on the Cypriot crisis.



''But Slovenia is different. It's a small country with a banking system that needs to get back on its feet. Quick and decisive action is needed''.



In Italy, on the other hand, ''debt is under control and the markets aren't panicking - this has been reflected at auction over the last few days''. However, the economics chief did warn that ''debt repayments from the public pocket to businesses need to speed up'' and that ''the tax wedge has to be beaten down''. Among the structural reforms he recommends ''increased competition'' particularly ''in the energy field, which is very costly for families, businesses, and services.'' ''While the Italian economy has registered generally negative growth this year, recession is starting to ebb and positive growth should kick in by the end of this year, the beginning of next'', he said. (ANSAmed).



