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This article was published January 19, 2015 at 12:35.
The last modified on 19 January 2015 to 14:25 hours.
The Italian government must ensure a cut structural deficit / GDP this year at 0, 25% (just under 4 billion) to respect the rules of the European budget according to the new version of “flexible” defined by the European Commission. He indicated the charge of economic affairs Pierre Moscovici during a meeting with the Italian press. “For Italy the fiscal effort this year to meet the medium-term objective is changed from 0.5% to 0.25%,” said Moscovici. This is possible “because communication on the flexibility of the rules on the budgets is applied immediately.”
Moscovici has indicated that the Commission is already working on the preparation of the new European economic estimates that will be published February 5. It is on this basis that the evaluation will be conducted on the public finances of Italy, France and Belgium, that assessment had been postponed pending complete economic data. The three countries had been held in November at risk of not respecting the rules of the budget and for Italy in particular the question concerns the rule of debt.
Just two months ago had been confirmed with clarity the different assessment of the government and the Commission on the extent of the effort to ensure structural budget this year, according to the calculations of the government the measures provided for producing a cut of 0, 3% of GDP, according to Br ussels cutting stops to share 0.1 percent. Meanwhile stepped in the new flexible interpretation of the Stability Pact that given certain cyclical conditions reduces the demand for cutting structural budget. “By the end of the month will be in Rome a new technical mission of the Commission to assess the situation in the light of data and economic analysis, the reform commitments, it is a constructive dialogue that continues,” Moscovici said.
The French commissioner reiterated that Italy like France need to ensure the consolidation of public finances, but made it clear how the sanctions are “a failure, a failure of the pedagogy of public finances governed : sanctions exist and are there and you can practice it, but it is better to find a good agreement “with the country concerned.
The new flexibility of fiscal rules is based on three pillars allowing room for maneuver on the basis of the reforms undertaken and implemented, the assessment of the conditions of the economic cycle and the choices for investment.
“Potentially Italy can ‘take advantage of all three of these flexibility clauses, we will next week,” he stated Moscovici.
In Italy real desire for reform, implementation is essential
The Italian government “has a real desire for reform and the European Commission wants to support its efforts.” He indicated the charge of economic affairs Pierre Moscovici Italian reporters noting that “reform efforts were accelerated in relation to the labor market, justice, public administration, taxation, with the aim to boost the country’s competitiveness.” Such efforts “must be continued and intensified, the reforms should be completed knowing that the rapid and effective implementation is essential for giving benefits.”
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