Even the Prime Minister is speaking of "stagnation," but leading industrialists say it is a sign of recession.

Enzo Cipolletta of the Industrialists' association Confindustria says "we are moving towards a highly dangerous economic situation."

The governor of the Bank of Italy repeated last Thursday what he has been saying for months, i.e. that labor costs must be lowered via a cut in taxation, and then government expenditure reduced.

Sergio Cofferati of Italy's biggest labor union, the CGIL, asked for government funds destined for economic revival to be spent now, rather than waiting any longer.