EU opens in Italy on margins budget in 2016 with clause reforms – Reuters Italy

       

* “Government forecasts GDP are realistic, in line EU”

       

* Padoan speaks of “strong identity of views” with the EU

       

* The margins are used to sterilize safeguards

       

Francesca Landini and Giuseppe Fonte

       

ROME, April 13 (Reuters) – The European Commission provides a first opening at the request of Italy to make more gradual fiscal adjustment, thereby freeing up resources to support the economic recovery.

       

“There is a possibility that Italy can make use of the flexibility clause on the reforms in 2016,” says the vice president of the Community executive, Valdis Dombrovskis, during an interview with Reuters before meeting the Minister of ‘Economics, Pier Carlo Padoan.

       

“The Italian government forecasts GDP are realistic and more or less in line with the forecasts of the European Commission in the winter,” adds Dombrovskis explaining that the new budgetary framework, if confirmed, would also be in line with the rule of public debt reduction.

       

In the Document of economics and finance (Def) the government writes that the reform program being implemented is to allow the use of new flexibilities granted by Europe.

       

The result is that next year the structural deficit, calculated net of the cycle and one-off, will decrease by 0.1 points of GDP instead of 0.5 points, as nominally require European rules. More …