BRUSSELS: Italian Economy Minister Pier Carlo Padoan said on Tuesday the recent German economic data show that Europe's economy is much weaker than it was expected to be six months ago, and further economic sanctions against Russia would be a "problem" for all sides.
"The macroeconomic picture is disappointing, and recent data on Germany sounds the bell alarm because it indicates that the weakness is more persistent in time and widespread in space than what we expected six months ago," Padoan said in testimony to the European Parliament's economic affairs committee.
Padoan did not specify which data he was referring to, but German industrial output declined by 1.8 percent on the month in May, its biggest drop in more than two years, data showed earlier this month.
The German economy probably stagnated in the second quarter in the face of political tensions abroad, the Bundesbank said on Monday.
When asked by reporters on the margins after his testimony whether Italy feared the consequences of possible new sanctions against Russia, Padoan replied: "Sanctions are always a problem both for who is subjected to them and who imposes them."
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