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This article was published on 14 January 2015 to 06:36 hours.
THE NEW FUND
The EFSI will be led by a board of directors, which includes the members, and a committee of investments with six experts independent and a dg
STRASBOURG
In an effort to boost economic growth, undermine the risk of deflation and encourage countries to modernize their economy, the European Commission has unveiled new guidelines in the application Stability Pact. Announcements will be welcomed in Italy, but to enjoy the new room for maneuver in the commitment to fiscal consolidation the Italian economic policy will have to demonstrate continuity and consistency.
The package – which is associated with the birth of a new European Investment Fund strategic (EFSI) from 315 billion euro (yesterday they were presented the operational details) – is one of the pillars of the new economic strategy in Europe. The latter is based on economic reforms, fiscal responsibility, and new public and private investment. “We want to strengthen the economic recovery,” summed up here in Strasbourg Pierre Moscovici, Commissioner for Economic Affairs.
The new guidelines – which are showing in fact the green light to Italian Finance for 2015, on which the European Commission has suspended the proceedings in November – will focus on three aspects: the provision of investment; Clause of structural reforms; and an adaptation of the budgetary commitments to the economic situation. These possibilities already exist. The EU executive wants from now on will be more transparent and more predictable in its decisions.
In short, the new flexibility provides that the Commission may take into consideration the economic reforms to allow a country a temporary deviation of the deficit compared to the path towards a balanced budget. Public investment will allow a deviation from the path of fiscal consolidation as long as in the case of the clause of structural reforms, the deficit remains below 3.0% of GDP.
The investments must concern the works co-financed by the European Union or dall’EFSI. As expected, the payments in the initial capital of the same state EFSI will not take any excessive deficit procedure. E ‘should be noted that no mention of the spin-off of emblée investment from the deficit calculation, as he wanted to Italy, but simply allowed to temporarily depart from the path of fiscal consolidation.
package – approved after a heated debate among the commissioners (some wanted to postpone the approval) – provides that the drainage is adapted to the economic situation. The more the country is in trouble, the less will have to reduce the deficit. The new guidelines should help Rome and Paris, after which Brussels has suspended judgment on the budgets in 2015, postponing decisions until March. Moscovici did not anticipate anything, noting that it is necessary to judge “the set of economic policy of a country.”
In fact, the Commission offers the countries new scope for action, which is to be fully utilized require efforts on the reform front and continuity of economic policy. Meanwhile, on the other side of the European strategy, one that involves the birth dell’EFSI, the Commission set out also yesterday the legislation that will go now before Parliament and Council. In recent weeks it has become clear that the most controversial aspect is the government of the new fund.
The EU executive would prefer that investment decisions are taken by independent experts, while governments have asked to influence the choices. Brussels has opted for a compromise. The EFSI will be led by two bodies: a board of directors and a committee of investments. The first will bring together the members of the Fund (now the European Investment Bank and the European Commission, possibly tomorrow the same states), and will be responsible for guidelines.
The second scheme, however, will bring together six independent experts and a general manager. They will choose the specific projects financed by the Fund. However, the Investment Committee “will be accountable to the Governing Council,” it said in a statement. As part of the dispute between the European Commission and national governments on the management of the Fund, it is difficult to understand what this formula means in practice. The ambiguity is probably deliberate.
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FORECASTS CONTAINED IN THE “ARM QUOTE” THE COVENANT EU
CLAUSE INVESTMENT
The states may temporarily deviate from their medium-term objectives to support capital expenditures in case of negative GDP or GDP much lower delpotenziale. You should also not exceed 3% of the over-deficit / GDP and new investments must be actual. The fields of intervention are allowed: national programs co-funded and funds for strategic investment
CLAUSE STRUCTURAL REFORMS
The European Commission assesses the impact of structural reforms adopted and verifies the implementation and the ability to increase the potential GDP. The evaluation is ex ante to allow the temporary deviation from the fiscal targets for the medium term, and in case of failure of the full implementation of the same reform, the Commission may adopt decisions resulting
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