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Padoan says Italy off radar of economic trouble

Italy is now “totally off the radar” of troubled economies and in no danger of contagion from Greece, Economy Minister Pier Carlo Padoan said Tuesday.
In an interview with CNBC television in New York, he said that Italy has reduced its “vulnerability” to trouble spots such as Greece through structural reforms and improvements.
A rise being seen in interest rates is merely a return to more normal levels, he added.
Meanwhile, he also said that Greece should follow the Italian government’s lead and implement reforms for its own good. He urged Greece “to leave the past behind” and accept change.
“We are making reforms…doing the right things, I hope that all countries do so, he added.
Padoan said that he was confident a deal will be reached to grant Greece the aid it needs.
Meanwhile, on the issue of a type of ‘bad bank’ vehicle to take troubled debt off the books of commercial banks, Padoan said that it would be “impossible” for Italy to develop anything similar to Spain’s institution.
When Spain introduced its ‘bad bank’ the country was living through “a real banking crisis” which is not the case in Italy, Padoan said.
“It is now much more difficult, indeed it would be impossible,” in Italy, where a device to deal with bad debt is being considered.
Italy is becoming an example in Europe thanks to the reforms it is carrying out, Padoan told a group of Wall Street investors in New York.

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