Tuesday, September 16, 2014

Padoan: Without increasing the VAT – TGCOM

Padoan: Without increasing the VAT – TGCOM

– The VAT will not rise. He assured the Minister of Economy Pier Carlo Padoan: “The government’s commitment is not to raise taxes,” he said. On the law of stability then explained: “It ‘s very difficult, but we will do everything possible to find sufficient resources and credible.” The minister also assured that the benefit “from the drop in the spread this year should be around 5 billion.”



Padoan: Without increasing the VAT

The recovery however, there will be at least in the OECD after 2014 and Confindustria of Italy’s GDP estimate for the minus sign this year, is the Minister of Economy to turn off the last hopes. This complicates the path of stability of law, (whereas according to the calculations of Confindustria 2014 will close at -0.4% for 2015 and 15.9 billion only serve to confirm the commitments already ‘taken) will be “very difficult” to be finalized, said Padoan guest Porta a Porta, although the government will do everything “to find resources sufficient and credible.”

No tax increases (thus averted the VAT increase) but through the spending review which will, as also said the premier Matteo Renzi, not only cuts but also “reallocation” of resources: “When we undertake to renegotiate $ 20 billion on 800 we are touching barely 3% of spending. Can find that some items are allocated in a different way. “

In addition, says the owner of Via XX Settembre, these 20 billion a figure that” hangs in the air but will not be all of the spending review, “which as indicated by the prime minister, will serve also for the reform of social safety nets.

“No social cuts” – In any case, again also ensures Padoan, it will be ” a program of targeted spending efficiency “and” without social cuts. ” Meanwhile, the MEF has launched its spending review with “the immediate reduction of 139 executive positions not general (from 712 to 573),” and the deletion of 10 regional offices by February 2015.

Fight evasion The resources for the stability law, Padoan said, “are in large part by spending cuts” (“by the ministries can take a lot of money”) and “efficiency on the revenue side. ” But among the chapters to raise funds there are also “fight against tax evasion and significant returns after killing the burden of debt.” Right from the spread could get a big hand: the decline in the differential with the German Bund should bring “a benefit of around 5 billion this year,” the minister announces, however, inviting not to take for granted that the relationship continues to go down.

“Bonus 80 € will be permanent” – Among other things, the savings on debt can give help on the front of the correction of the public finances, but it can hardly be used as structural coverage , that you are trying to confirm the bonus of 80 €, which, he says Padoan, “will be made permanent because financed by spending cuts permanent.” Bonus reiterates that the prime minister of wanting to try to extend or on behalf of families or companies.

The main contribution to growth will, however, hang up the reforms, not just those already implemented but also those of the Thousand Days. Just those reforms that the EU expects, as confirmed by the spokesperson of Commissioner for Economic Affairs Jyrki Katainen, Simon O’Connor, noting that “in Italy there is no risk but which of the Troika in assessing the law of stability, we will also look at the “debt remains high and will be ‘a central issue.” 16-SET-14 21:08

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Pier Carlo Padoan
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