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The program privatization of the Italian Government must once again become “more ambitious”. To recommend, in line with the wishes of the European Commission , is the International Monetary Fund in the report issued at the end of the mission of its technicians in Rome for the customary annual monitoring. “The objectives of privatization were lowered in the def than the budget law would be appropriate to return to those more ambitious targets,” it said in the final statement, in which the IMF defines as “a positive step” the sale of shares of Enel made a sign to the end of February.
The inspectors Washington they express a general appreciation for the reforms launched by the executive Renzi – “ good “, “have also restored confidence” – but stressed that the “challenge” of the coming years is the full construction of those measures and Italy must ” take advantage of the right time “to accelerate efforts. The reference is to the famous “window of opportunity” opened by falling interest rates and the price of the oil and the euro / dollar especially favorable. A situation that Roma, being re-emergence “of a severe recession”, must take advantage of to “revive its economy.” In particular the Jobs Act , according to the Fund, “will give better incentives on recruitment and training” and “improve the reallocation of workers between companies”, but remain “elements still to be implemented.”
As for the growth of the Italian economy, the Fund has revised upwards its estimates of GDP than forecast in April and now believes that this year the progress of the product will be 0.7% and in 2016 of ’1.2 percent. In April the weather stopped respectively + 0.5% and + 1%. The Head of Delegation of the mission in Italy, Petya Koeva Brooks , said the rise in estimates is due to the “ good results ” in the first quarter. The “measures decided” the government has been fundamental to Italy out of the recession, but now “requires a much stronger growth to reduce unemployment and debt faster “.
The evaluation of the Fund, said Brooks, focused on three areas:” The low level of productivity , the restructuring of the bank balance sheets and cutting spending designed to lower taxes. ” As for the banks the node is always the same: loans difficult or impossible to recover , which according to data released Monday by its’ Abi have exceeded 190 billion but there’s a euro 350 if one includes substandard. According to the Fund performing loans reached a record level of 18 percent, “becoming a question systemically important “. Because the ballast induces institutions to grant new loans with difficulty to small and medium-sized enterprises. Serving then, the report said IMF actions “to strengthen the balance sheets” freeing “resources for new loans to businesses and manufacturing sectors.” In particular, the Fund urges to define “ time limits for impairment of the suffering by encouraging banks to address the problem more quickly and reducing the stock of suffering.”
” within a global strategy “, it stresses the body chaired by Christine Lagarde ,” a market for distressed debt could play an important role: it should encourage private companies to manage assets, including through regulatory measures and tax incentives for the sale of non-performing loans. ” As the hypothesis of a structure supported by public funds, the IMF points out that “if properly conceived and in line with European rules on state aid, could restart the market bad assets “.
In terms of deficit , the Fund warns that the refunds to Retired following the judgment of the View “not should change “the budgetary targets for this year and next. The “modest fiscal consolidation of 0.25% of GDP expected by Def” is considered “appropriate”, as “a moderate use of the flexibility offered by the stability and growth pact would support the reform program Structural and create room for further tax cuts. ” Always keeping in mind this objective, the safeguards “should be offset by spending cuts to avoid harmful tax increases .”
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