Tuesday, May 17, 2016

Letter Padoan EU: “We will avoid detours, reaffirmed commitments’ – Il Sole 24 Ore

“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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