Sunday, May 24, 2015

May not lose the route – BBC



Milan , May 24, 2015 – 09:25

     
     
 

The President of the European Central Bank has always obliged to respect the division of powers, to prevent the invasion of the field. And yesterday did not change line, Mario Draghi. The role of Frankfurt is not to suggest the governments what to do. In the difficult days of an agreement on the debt greek recall, however, it is very strong: the concern is deep and growing differences between the countries. Because the distances in terms of growth, government debt, productivity, unemployment, eventually pose risks too high for the euro. To the point of threatening the very existence of the monetary union. Which Frankfurt is the guardian and the main guarantor not only to the markets, but especially during uncertain policy and national acrobatics.

A strong signal on two fronts: the push to have more courage to European governance, while Europe reveals all its fragility in the process of solving the crisis in Athens . And the bond for the United States not to loosen the path of reforms. Words that come just as the economic policy choices, which have made it possible, despite the recession, to keep accounts in the Italian precinct of European standards are becoming a kind of work in progress. Decisions that appeared defined assodate, they are repeated as far from certain. Before the Constitutional Court ruling on the block of adequate pensions, now no Europe to the new VAT regime which provided for shifting the burden of payment of the supermarkets rather than suppliers. Extent that the intention of the government, was intended to build a bulwark against tax evasion. Suspense account total: three billion that the Treasury, having already canceled the so-called “treasure”, will have to find somewhere else.

It would be a mistake to assess what is happening only in terms of accounting. Choices buffer that will get immediate results, to hear the words of Draghi, should not divert attention the broader process of reform. The point is that the business of government, especially in economic matters, is proving to be increasingly exposed to the blows of the mistral coming from appeals. Decisions dating back to 2011 (the freeze of pensions) have effect (after the judgment of the Court) with five years late. In this way disappear in one fell billion savings that were considered consolidated. Forcing the government in office to run for cover. If the VAT issue was so uncertain as to imagine already possible revenue alternatives if this tax is wrong, then it will start another. Sort of Fisco clockwork. And that’s what could happen: the so-called safeguard clause (one wonders safeguard for those who) could trigger an increase in the (usual) gasoline. Although the Treasury has said that it will seek other avenues. And then have to see what will the judges of the consultation on the block of public employment contracts, still 6 years. In this case the account would have many more zeros.

it therefore feels that the executive is forced to a kind of race to plug the holes (not only financial but also normative) that open every time that the European Union or the Court, or Tar, intervene in matters of public finance. A contradictory required by law, of course. A system of guarantees for precious citizens. Yet, given the frequency of interventions that will challenge all, in recent weeks, it come to think we need a more organic design, a maintenance choices. Or perhaps, in view of the forthcoming Stability Law, a sort of preventive check on the most controversial issues in a position to secure the choices.

Savings budget challenged, passages of structural reforms can ensure the balance of accounts, transformed from solid certainties in treacherous territory for the deficit. Just when the external framework, starting with Greece, appears more unstable. It becomes central to this point not to lose their course of reforms requested in all EU countries by Draghi. With un’accortezza: we must ensure that they are, from a regulatory point of view and accounting, the soundest possible. Less exposed to winds, relentless, appeals. ALL RIGHTS RESERVED ©

May 24 2015 | 9:25

© ALL RIGHTS RESERVED

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