Italy is beginning to see the first results of the action taken on several fronts euro group. Meanwhile, it is stopped the German offensive on the roof of the bank bonds. Then they pass not only the idea of a revision of the rules of the surveillance of public finances, too complicated and not very transparent, but also the explicit request of Rome and seven other countries to review the method of calculation of potential growth, or ‘output gap ‘, which could have an immediate benefit on Italian accounts. Good news also on the front of flexibility: “I have no reason to believe that the required flexibility is not granted, the dialogue with the Commission, as usual, is going very well,” said Economy Minister Pier Carlo Padoan. The answer on flexibility should arrive around mid-May and “until now we have not had definitely opposed signals,” said Padoan. Of course, it helps that the Commission has recently cleared through customs flexibility for counterterrorism expenses, and that Ecofin has broken the taboo of the revision of the intricate surveillance rules, related to indicators are difficult to control by the ministers of the economy and not always reliable, as the structural deficit.
“the countries unanimously recognize that the Pact as it is difficult to manage, to communicate with and to justify to the public,” said Padoan , convinced that it is also “very flexible and adapts bad economy that changes.” The Commission, by order of the ministers, will work to reduce and simplify the indicators on which today is based on whether a country is complying with the Stability Pact. “The intention is to focus more on what is really in the hands of the ministers of the economy, ie the evolution of primary expenditure and measures that create revenues”, said Commission Vice-President responsible for the euro, Valdis Dombrovskis . The Brussels experts also work to a new assessment of the output gap. In the immediate future, as it will test the feasibility of proposed ministers of Italy and seven other countries, that is, bring two to four years, the time horizon for the definition of potential growth, aligning it to the calculation that these countries use.
“With the current method Italy is severely penalized, this method creates a difference in treatment and can trigger action by the EU is not justified,” said Padoan, noting that “if it is a different method of calculation, Italy it would be fully balanced budget “. Also on this point, the President of the Eurogroup and Ecofin, Jeroen Dijsselbloem, gives reason to Italy. But then it is up to Germany when passing to the discussion on the review of the risk of the banks’ government bonds. “Most countries were opposed” to put limits, said Padoan, who leads the team of those who believe that initiatives in this respect, instead of reducing the risks, “may even increase them.” Padoan for the issue must remain at the Basel Committee, while the EU’s priorities should be other: the insurance scheme for deposits and ‘backstop’ public for the common bank bailout fund.
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