TWO MILLION FAMILIES IN ITALY MAKE IT ONLY TO THE MIDDLE OF THE MONTH ACCORDING TO A CONFESERCENTI-SWG SURVEY. “CHRISTMAS COULD BE THE LAUNCHING PAD FOR RETURNING TRUST TO THE ECONOMY”

Italian families are finding it increasingly hard to get through the month, with wallets emptying out even by the second and third week, thus making it necessary to tighten belts in the face of the economic crisis that is destined only to get worse.
Over 6 million families, in fact, manage to make it economically only to the third week of the month, and more than 2 million don’t even make it to the second week according to a survey conducted recently by Confesercenti-SWG on a nationally representative sample. A net pessimism was also revealed by the survey with a good 58% of those questioned stating increasing worry in regards to the next 12 months. And 82% answered that they have concluded that spending must be reduced and things must be renounced, whether they are indispensable or not.

“The net perception by Italian families on the gravity of the situation calls for the absolute necessity of immediate and strong interventions”, commented Marco Venturi, president of Confesercenti. Venturi also launched an appeal: “Let’s not waste the occasion of Christmas to help low earnings and internal demand. It is precisely Christmas that can instead be the launching pad to bring trust back to the economy and families in order to start to cut the length of the crisis, starting with the support of small and medium sized businesses, thus also blocking thousands of closures and the increase of unemployment”.

For 8.3 million families (34% of the sample) the recessive phase will last for at least another one to two years.
For another six million (26%), however, it could last over two years. There are 12% who believe the crisis will last only 6-12 months, while the most optimistic (9%) believe the crisis can be overcome within 6 months. 19% could not answer how long they thought the crisis might last. Opposed to the 58% majority that believes the crisis will only get worse, there is a more positive minority (14%) that believes there are only improvements ahead; for 28% there will be no change. The number of families that are now worried about the future has doubled since 2007 (from 16 to 32%).
Though 62% of families declare that they arrive at the end of the month with their own earnings, the third week of the month becomes difficult instead for 6.3 million families (26%), and another 2.2 million families don’t even make it to the end of the second week (equal to about 9% of those surveyed). 3% did not respond.

While in 2007 about two thirds of Italian families declared that they had cut back on spending, in 2008 that total reached 82%. The first items that have been cut by families are clothing and accessories with a 4% increase over 2007 (from 48% to 52%). Savings on domestic goods and food remain the same. On the other hand, more families renounced vacations in 2007 (32%) than in 2008 (25%).

Worries about the economic crisis end up attributing the responsibilities similarly to both the center-right government and the center-left opposition. 74% of the sample judged the government’s interventions to confront the crisis to be “very little” or “not at all”. This is countered by only 22% of those who consider the government’s work positive, and a mere 2% who believe it is doing its best. The opposition, however, has not earned points either: 76% do not judge its actions positively, while 18% support it.

According to those surveyed, the priorities that need to be added immediately to the agenda are measures that sustain small and medium sized businesses in order to avoid closures and more job losses (30%), a request to de-tax Christmas bonus pay (22%), and a reduction in loan taxes and taxes for numerous families (14%).