Cdm approves the update of the Def, Renzi: in 2017, an increase of 1%, the deficit up to 2.4% – reuters uk

The growth then there is, even if smaller than expected, and will be driven by the measures that the government has in the pipeline with the next manoeuvre. The deficit will continue to come down touching the lowest point since 2007. At least according to what the executive wrote in the update note to the Document of economy and finance because “in accordance with the rules of the Eu”, as stated by the prime minister, the executive will ask for a space out of the Stability Pact up to 0.4 points (about 6 billion) related to the “exceptional circumstances” that the Country has faced the front of the migrants, and because of the earthquake in Central Italy.

“The summary is: the deficit goes down, the Gdp goes up – said Renzi – all and two with a trajectory that is less wide as we wanted, but they both continue to go in the right direction”. The climate, in a meeting that started late in the evening with over an hour of delay is less vibrant in the past, when expectations of growth were much more optimistic.

The premier joke – “today is St. Prudentius, has won the line Padoan” – but both the president of the Council that the minister of the Economy Pier Carlo Padoan admit some dissatisfaction. Numbers, fixed with the update of the Def, indicate a growth steady at 0.8% for this year (from 1.2 expected in April), and that, however, could reach the psychological threshold of 1% in 2017, “with a profit is not irrelevant, as pointed out by Padoan, thanks to the push to investments and measures on the social that will come with the next Budget law.

the revision of The growth leads to a revision of the target deficit, which in 2016 will rise to 2.4% (from 2.3%) and that the next year will be around 2% (compared to 1.8%). A seemingly low compared to the figures circulated until the eve, but that will rise to 4-tenths of a point with the permission of the Parliament, but this is still to be verified, also in Brussels. Not the case Renzi has talked about a “maximum” of 0.4 points and the commission had made known that there was an orientation favourable to the grant yes the new margins, but up 2.3%.

You will nevertheless be of use, as pointed out by the prime minister, not to the flexibility provided by the communication Juncker but the exceptional circumstances laid down by the Treaties. Margins, however, will be essential to compose the next manoeuvre which will be “ruled out” tax increases linked to the safeguard clauses, as confirmed by Padoan and that will see “an increase” in healthcare spending, as it has guaranteed the premier, while not going into detail of the figures.

In his judgment, Brussels will be influenced also by the management of the debt in contravention to the commitments taken in April, in 2016, the relationship with the Gdp will go up – instead of down – up to the 132,8% and then embark on the road of the descent only from 2017 (when it should be equal to 132,2%).

“The debt/Gdp will not go down, I admit I”, said the owner of via XX settembre, remarking, however, that the dynamics will keep fixed for the 2019 draw, and then with a greater effort moved to the next two years. On the other hand, the privatisation programme has been a stop, but only to prevent “dumping” in the market conditions of extreme volatility.