Wednesday, February 25, 2015

Ok Brussels to Stability Law but the debt threatens the … – In Terris

Ok Brussels to Stability Law but the debt threatens the … – In Terris

The law of stability has given the green light by the European Commission. Brussels approved the draft budget presented by Italy for the last report card of the year. In the analysis document presented by the head of Economic Affairs, Pierre Moscovici, and Vice-President, Vladis Dombrovskis, not have been detected elements for an infringement procedure against our country. Together with Italy was also promoted Belgium. Reprimand, however, for France, which has delayed the return of three years in the parameters. A pat on Germany, which is again noted that its active trade balance is too high. However, Berlin is still able to pass unscathed review. But Prime Minister’s office is not yet time to rejoice as the highest administrative institution of the EU has warned that there is still much work to do to correct macroeconomic imbalances: “Public debt remains an excessive macroeconomic imbalance – we read in the papers – requiring sp ecific monitoring and decisive political action, but at this stage, considering the reform plan already passed and relevant factors, does not open a procedure for excessive imbalances. ” Italy, therefore, remains in the category of “risk 5″, in a step by insufficient absolute.

The rule of debt, given the interpretation that the Commission has given the Pact stability , expected for countries with debt above 60% of GDP, there is normally a fix annual not less than 0.5% of gross domestic product. In periods of economic contraction, however, it was decided to allow more flexibility and reduce the correction of 0.25%, according to results from Italy centered updated economic forecasts. In a context of weak growth protracted and productivity consistently low “risks arising from a very high level of public debt and weak competitiveness have not increased significantly.” Hence “the need for action to reduce the risks for the Italian economy and given the size of the EU as a whole.” In any case, efforts for 2015 “are enough” and the rule of the debt would not have been able to apply this year “because we do not want a brutal correction” that does not take into account the economic condit ions.

A particular passage is dedicated to the reform of Labour : “The Jobs Act has made decisive changes in the legislation of labor protection and benefits for unemployment to improve the entry and exit from the labor market” . In March ‘was fixed an evaluation on the reforms approved. It will not be ‘launched an excessive deficit procedure even for Belgium, another country besides Italy called compliance by European parameter on the containment of debt-GDP ratio.

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