“I am confident that a significant deviation will be avoided” Thus Economy Minister Pier Carlo Padoan to Dombrovskis and Moscovici commissioners in the letter with which it responds to their missive today.
“I am confident that a significant deviation will be avoided”
Pier Carlo Padoan to Dombrovskis commissioners and Moscovici
  
 
  
Here is the EU letter to Italy: yes to flexibility from 13.5 billion in exchange for commitments on 2017
  Padoan reaffirms the commitment  
 Padoan reaffirms “the commitment,  including planned efforts, taken by the Italian  Government in the recent stability program which  will be reflected in the law of stability, to  substantially comply with the budgetary rules in  2017″. I recognize, writes Padoan,  “the Commission’s analysis of the  macroeconomic situation and the Italian budget.  Both the Commission that the Government provide a  recovery that is strengthening in Italy and in the  euro area, although not a fully satisfactory pace.  This highlights the need to make all the necessary  efforts – in national policies and in the  eurozone – to boost growth and create jobs.  ” In this complex scenario, the minister  reiterated their commitments to be “broadly  in line” with the budget rules for 2017 
  
  
  The commissioners  recommend that firms provide to Italy 0.85%  flexibility  The 
 Dombrovskis and  Moscovici Commissioners recommend to the College  of EU Commissioners to grant Italy a total of 0,  85% flexibility, a sum “without ever earlier  received from anyone else.” 
  Italy heal the gap crica 3 billion euro   
 In return, Italy is committed to  healing the ‘gap’ highlighted from  Brussels on 2017, amounting 0.15% -0.2%, about  three billion Euros in order to avoid a possible  “significant deviation” from the  goals. The data are read in the letter to Economy  Minister Pier Carlo Padoan. 
  The commitments requested by the  Commissioners  
 “Our assessment of  the fiscal effort planned for 2017 is particularly  important. In essence, the Commission needs a  clear and credible commitment that Italy fulfills  the requirements of the preventive arm of the  Stability Pact in 2017 in order to gain additional  flexibility required for 2016, “write the  commissioners. The Commission recognizes the  Italian commitment to bring the deficit to 1.8% in  2017. “In structural terms, according to the  matrix published by the Commission Communication  on flexibility, a country with more than 60% debt  should make an effort wider budget by 0.5% both in  2017 and in 2018. in order to avoid being  considered a significant deviation, the Italian  effort must be within 0.5%, “the letter  reads. “It is our intention to recommend to  the College to grant around 0.5% available for  reform, 0.25% for investment, 0.04% for the  increase in costs related to the flow of migrants  and 0.06 % for exceptional expenditure related to  security. ” In conclusion, the commissioners  ask the Minister Padoan confirmation that  recognizes their analysis. “It is crucial to  the Commission that Italy is ready to take  measures to ensure that this gap does not  materialize and that the 2017 budget is at least  substantially in line with the rules of the Pact.  The repeal of the safeguard clauses should be  conditional to achieving this “goal. 
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