IMF calls for greater investment in Infrastructure

The IMF released their World Economic Outlook yesterday. Part of the outlook includes a study that advocates increased investment in infrastructure. You can see it here http://www.imf.org/external/pubs/ft/weo/2014/02/pdf/c3.pdf

The crux of the study is that infrastructure forms the backbone of all modern societies. Described in the report as "a crumbling backbone", the last three decades has seen a significant decline in public infrastructure investment across almost all regions. By investing in infrastructure now, governments and the private sector can raise short term output through (among other things) job creation while also creating long term efficiencies and eliminating infrastructure bottlenecks.

The report concludes that the current environment of low financing costs and economic slack provides us with an opportunity to create an impressive infrastructural legacy if we invest well and efficiently. Well worth a read in our opinion.

Italian public sector payments: "The cheque is in the post"

If a European Government were to miss a payment on its debt we would have outcry from all corners of financial markets and very possibly a rapid return to the chaos of the early months of 2012. Luckily that risk has passed (for now) so spare a thought for those businesses that provide services to Eurozone public sector bodies.

It's a sad fact that European governments have a growing habit of dragging their heels when it comes to paying their invoices. Last week the Italian state provided over 30 billion euros to pay overdue bills owed by its public sector bodies. In some cases these delays have gone on for months, resulting in job losses and bankruptcies. Even with this cash now available, the process for making payments is so cumbersome that creditors could still face further months before receiving their overdue payments.