The crisis in Italy was worse than the Great Depression of ’29. So now we have to move “decisively” to attach the recovery, through a law of stability-oriented growth that will rely on a “dowry” of about 11 billion (in deficit) to be used first of all for cutting taxes, achieved through the margins of flexibility already contained in the EU rules and that will be exploited to the hilt. But nearly six billion saved on the interest on the debt due to lower spreads.
The Ministry of Economy published the update note of Economics and Finance in outlining the lines, but also the resources, which will move the Stability Act of 2015 for the “deep and persistent recession” left “structural damage” that need strong intervention to be recovered: “We must move decisively on several fronts – Pier Carlo Padoan said the minister – in the knowledge that in the absence of a robust recovery keeping the productive and social fabric would be at risk, household wealth threatened the prospects of young people affected. “
The document, which ends with very detailed answers to the EU reliefs, ago slip a balanced budget to 2017 and focuses on spending cuts. But, to reassure the ‘guardians’ of Brussels, anticipates that in the law of stability will be putting a safeguard clause to guarantee the objectives: a blow that aims to avoid but it’s worth 12.6 billion on 2016, 17.8 billion in in 2017 and 21.4 billion in 2018.
The government is betting everything on a mix of measures to boost investment, create jobs and thus growth. For this maneuver for next year needs to be expansive and make full use of the flexibility to implement “an ambitious package of structural interventions” (the reforms will lead in the long term 8.1 GDP points) to return “on a path sustained growth. ” By 2015, invoking the “exceptional circumstances” the government will leave then go up the deficit from 2.2 to 2.9 programmatic trend (0.7 points, about 11 billion in fact) with the “will to finance expenditure commitments in sectors deemed Most relevant for growth and reduce the tax burden on families and businesses. ”
The reduction of taxes is one of the main measures of the next stability law, which should be between 20 and 22 billion euro. For the decline in the tax burden serve approximately 10 billion (7 to confirm the bonus of 80 euro and 2 others about the new reduction in favor of the companies). The menu will include then, the relaxation of the internal stability pact (1 billion), resources for school (1 billion) and new social safety nets (1.5 billion).
There are also to cover expenses postponed (between 4 and 5 billion) and 3 billion to prevent cutting of the linear tax rebates, ‘inherits’ the government Letta. In addition to an adjustment of the accounts, less than expected due to the postponement of a balanced budget in 2017 (there will be, says the Def, a “positive change in the structural balance by 0.1 percentage points of GDP”, about 1.5 billion.
The debt eventually will rise this year to 131.6%, 3.7 points more than in 2013: a will weigh less privatization (we will stop at 4.8 billion against 10 estimated) but also an increase in “cash deficit”, that is, the requirement of 0.7 points. despite this in the first 9 months of this year has improved to 7.7 billion compared to 2013
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