on the flexibility but also the demand for a greater commitment on the Italian public finances in the coming years. The European Commission gives the green light to Italy to a flexibility of 0.85% for 2016, but points out that the country, as required by the rules, should make an effort greater than 0.5% in 2017 and 2018. the European Commission will recognize, therefore, a margin of deficit in Italy for more than 14 billion due to investment clauses, reforms and expenses to manage the influx of migrants more to those relating to safety. What we do not know if it is still in the decisions that will be explicitly or implicitly quantified the increased budgetary effort to be made in 2017 to ensure compliance with the Stability Pact. In the last letter sent to the Treasury (text here), Vice President Dombrovskis and Commissioner Moscovici indicate that “in principle, to avoid being considered a significant deviation situation, Italy’s structural effort must be within 0.5% “(8.3 billion in 2016 GDP values). However, according to the formula traditionally used by Brussels, to be able to be at least able to comply with the EU rules “in outline” would be sufficient a correction well below the maximum level of 0.5%, perhaps around 0,2- 0.3% of GDP (3.2000000000 to 4.8000000000). It is currently only the conclusions drawn from past experience, there is no confirmation that this will be the final decision tomorrow. The next check will be in the fall.
Padoan: “We will avoid significant deviations’
” I share the Commission’s analysis on the Italian economic situation and the budget situation – writes the Minister of Economy Pier Carlo Padoan, the vice-president of the EU Commission Valdis Dombrovskis, and the Commissioner for economic Affairs Pierre Moscovici after obtaining the required flexibility spaces on public accounts (in this text) – Both the Commission and the Italian Government foresee a recovery that is now strengthening in Italy and in the euro zone even if not an entirely satisfactory pace. This emphasizes the need to do everything possible – in national and Eurozone policies – to boost growth and create jobs. ” “In this complex scenario – he underlines the minister – I want to reiterate the commitment, including the already planned fiscal efforts, taken by the Government in the recent stability program – which will be reflected in the budget planning document – a widely comply with the fiscal rules of ‘EU in 2017. I am confident that a significant deviation will be’ avoided ‘.
Renzi: “Padoan has done an extraordinary job”
The Brussels favorable opinion had been early in the morning even by Renzi premier. “In the coming hours will be released the exchange of letters between the EU Commission and the Minister Padoan, who did an outstanding job, and we can see recognized the element of flexibility,” he said, recognizing the commitment of the Minister of Economy in the negotiations on accounts with the European Union. After rumors, Renzi raised: “The element of flexibility to the end to Italy applies different money.” “This flexibility – he said Renzi signing the Pact for Abruzzo in L’Aquila – is a huge priority for our country. We must affirm the idea that we should not live in fear and only concern, but we should have the courage to act. ”
Reactions
Came the first reactions. “The clearance expected by the European Commission to the chart of accounts presented by the government – says Renato Brunetta of Forza Italy – will only be a Pyrrhic victory for Renzi, a mess of pottage. Our premier vain believe that Europe is prepared to accept his deficit spending, while the truth is that it is preparing to attack decisively in October, when the nodes will be home to roost and the Italians will have to undergo a maxi maneuver 40- 50 billion euro to correct the deviation from the rules laid down in the European treaties. ” “There are already first sirens evoke a possible arrival of the Troika next year,” Brunette adds that defines the Italian accounts “unwatchable and unpacked” .Quantifica resources and indicates where to invest them Maurizio Lupi, deputy chairman of the Popular Area. “The 14 billion flexibility recognized by the European Union to Italy – he says – are good news. These resources are now being used to create real development. I point out what they say all economists and demographers, there can be no development in a country that no longer children. so now significant portion of those resources will be invested on the family. “
May 17, 2016 (modified May 17, 2016 | 18:39)
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