Stability, ok from the EU. But Italy remains "under special surveillance" – topical

Stability, ok from the EU. But Italy remains “under special surveillance”

Brussels has decided not to open a procedure against Italy but sent a letter to address compliance with the European standards on the debt.

Luca Fiorucci February 26, 2015 5:12

European Commission has decided to not to open a procedure against Italy after analysis of the Stability Law made by the College of Commissioners, who have, however, sent to Rome a letter that calls on the government to observe the European standards on containing the debt / GDP ratio. The document said that “ imbalances were unchanged , require specific monitoring and decisive policy actions “, but are recognized important factors, in particular, “ in the case of France of ‘Italy and Belgium “, the three countries under observation after the presentation of the Financial,” crucial the full implementation of structural reforms in place and scheduled . “

The Commissioner for Economic Affairs Pierre Moscovici nevertheless pointed out that Italy remains in the category of “ special surveillance” to macroeconomic imbalances which is from 2014, and explained that “ the strict application of the rule of debt would require a correction too brutal, would put Italy in an unsustainable economic situation “. Are three, according to the document, the factors recognized in our country to not undertake the procedure despite the failure to achieve the “ medium-term objectives “. First, the protracted recession to the end of 2014, making it even more difficult to comply with the rules on the debt; then the expectation that Italy put in place the required adjustment towards the medium-term objective, and finally the structural reforms that the government is working.

Just about reforms, the European Commission also came a tribute to Jobs Act, that, the document reads, “ did decisive changes in the legislation of labor protection and benefits for unemployment to improve the entry and exit from the labor market “. Economy Minister Pier Carlo Padoan commented: “ We are pleased with the recognition of the correct setting that we have given to the public finances is an important achievement especially because only a few months ago it was not for nothing discounted “. Even France is saved from rejection Brussels , and then two more years to bring the deficit to GDP ratio, now at 4.4%, below 3%, but both this year the next will have to make additional efforts on the structural deficit, the Commission will work in progress.

A close up of the progress made will be back in May. The Belgium pass the exam on the law of stability, but also to the Belgian Government, like the Italian one, was sent a letter with the communications of these decisions in which “ please note that efforts must be made to reduce the public debt “explained Moscovici. also Germany will be” under monitoring “of European Commission , but for the high current account surpluses and insufficient action to reduce it. Moscovici explained that this surplus will cause “ underinvestment “, but “ no corrective action plan was asked “, and EU is confident that the correction of the surplus will be part of the reform plan in May.

Photo Credits | Xavier Pironet / Shutterstock

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