Cottarelli: cuts of 20 billion checks are possible but need … – Il Sole 24 Ore

Cottarelli: cuts of 20 billion checks are possible but need … – Il Sole 24 Ore

News Italy Cottarelli: 20 billion cuts are possible but serve expenditure controls

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Isabella Bufacchi. With articles by Paul Bricco, Luke Davi | September 7, 2014

The revision and reduction of public spending is a process in three stages that part of the decisions, passes through the implementation and closes with the controls and “allowing the tax cut.” But “decisions can only be political.” And if the policy decides to reduce spending by $ 20 billion, “I think it’s possible, but on the basis of primary spending of $ 700 billion that goes far beyond the goods and services.” So Carlo Cottarelli, Commissioner for the spending review, he put the poles and also the stepping stones to one of the most difficult chapters, but potentially the most promising of fiscal policy in Italy.

Speaking at the Ambrosetti Workshop, Cottarelli reiterated, as it has for some time now categorically, that the scissors of the spending review is holding the policy: “The decisions that can not be political, technicians indicate the economic effects of the spending cuts. ” However, the commissioner – that many still give outgoing – took the opportunity to draw a virtuous cycle of spending review. It starts with deciding what to cut (“for culture and education spending is not high”). We then move on to the implementation that is crucial, “priority”. To get to the controls, which are essential and “missing.”

For Cottarelli lacks “quality analysis” of spending: “The local authority should always do and instead do not do it.” The implementation is slow for three shortcomings: the deadlines are considered only “indicative” by public officials but “this attitude has to change”; “The laws and the number of implementing decrees are too numerous and the process for approval is too cumbersome.” Excessive ministries involved at the same time to act on the same subject, an aspect that slows even more processes “come into play because the feudal powers of the individual departments and form bottlenecks.”

As for the controls, Cottarelli cut short: “completely lacking.” The example is that of the local authorities that they should buy through CONSIP or can operate autonomously only at lower prices. Well so far no one has bothered to enforce this rule, controversially remarked. “We have sent letters to sample some recipients to control and mayors have offended, but they are only the controls that are to be made.”