Thursday, October 27, 2016

Maneuver, Padoan to the Eu: extraordinary expenditure for the earthquake and migrants – The Sun 24 Hours

“outside of considerations on the economic cycle, the change in the target on the 2017 compared to the stability programme of the 2016 is largely explained by the
exceptional costs linked to the risks on immigration and seismic”. This is what we read in the response of the minister of the Treasury, Pier Carlo Padoan, addressed to the Eu commissioners Dombrovskis and Moscovici. The minister explained that
the Italian economy is still experiencing cyclical conditions of difficulty, and this suggests “a more gradual adjustment towards a target medium
the end that it remains in the balanced structural budget to 2019″. As for the impact on the economy of the upcoming constitutional referendum, “can be significant”.

Italy will not, therefore, steps back and responds to the remarks of Brussels on the Budget law by leveraging on the large, sustained efforts to tackle the issue of migrants and the earthquake emergency, exacerbated by the tragic events of the last few hours. The government’s position is that it is legitimate to exclude from the constraints of the structural deficit and the expenditure incurred for the earthquake and migrants and the deviation of the structural balance with respect to the commitments undertaken in the spring coincides precisely with such costs.



Manoeuvre (Source: letter from the Eu? We’ll see, but the substance measures do not change

Padoan: up to 7 billion for migrants and earthquake
Padoan explained that the expenditure to deal with the phenomenon of migrants could reach up to 4.2 billion euros next year. While the costs related to the earthquake amounted to 2.8 billion euros for a total of 7 billion euros. The minister of the Economy argued that the costs of the rescue operations of migrants, first aid and health care, protection and education for over 20 thousand unaccompanied minors are estimated to be 3.3 billion euro in 2016 (net of Eu contributions) and to eur 3.8 billion (0,22% of Gdp) in 2017 in a scenario that is stable.And fears that spending may rise by up to 0.24% of Gdp, i.e. 4.2 billion. Not only. Italy in 2017 will incur “significant expenses for relief and reconstruction related to the earthquake, for a total of 2.8 billion euro”. Will, for example, to put in security “42,000 schools, of which about 30% are in need of structural repairs or to be completely rebui lt”.

"The cyclical conditions of difficulty suggest a more gradual adjustment towards a target medium
the term that remains is the balanced structural budget to 2019"

Pier Carlo Padoan, minister of Economy



The letter the Eu to Italy: distances are substantial with respect to the commitments

The doubts of Brussels
The doubts of Europe focus on the dynamics of the structural balance, calculated net of the cycle and of one-off. In the face of a request for a correction of 0.6% on the part of the Eu executive, Italy recorded a decrease of 0.4%, ranging as well from 1.2% in 2016, 1.6% in 2017. A deviation is considered very relevant by the Commission that you would be happy with the result even of a strain of 0.1%. At the same time, in a letter sent last Tuesday, the Brussels were, to our Country the use of money to interventions that are not closely linked to the emergency, as the safety of public buildings and schools.



the answer to The Eu: “the Deficit in line,”

The answer of the Treasury
net of migrant voices and the earthquake that, in the calculations of the
government, worth 0.4% of Gdp, the deficit is the nominal grind to a halt, in fact, 1.9% of Gdp, half a point under the figure of this year and substantially in line with the required european. The same extra expenses affect also on the structural deficit, the real parameter that affects Brussels and which represents the object of the contend of the dialogue between the parties. In the letter of the answer that the Treasury has put in place, the government has sought, therefore, to explain why the structural deficit is worse, and to better specify why he believes that go aside from the structural balance and the expenditure for migrants and earthquake the deficit.



structural Deficit and one-off, with the Eu with the game’s 1.5 billion

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Ddl budget Monday at Montecitorio
To be missing still, however, the final text of the budget law. The measure is in the final stages at the Ministry of Economy. By the end of the week should go to the Quirinale for the nulla osta of the president of the Republic, to then be transmitted to the Rooms. It is not excluded that the whole process can be finalised just before the weekend, but to Parliament, there are those who don’t expect it before Monday.

Calenda: tools that are worth 20.4 billion
The minister for economic Development, speaking of the law of balance in the margin of an initiative on the reasons of the ” yes ” in the referendum, he recalled that in the law of budget “there are tools that are worth around 20.4 billion euros”. And that “the law contains incentives to automatic, so it’s not subject to the notices, permissions or stamps, nor things complicated” Are measures”, he continued, “that require the investor a very simple thing: the decision to invest with a
special prize for anyone who invests in advanced technologies related to manufacturing in 2017″. “Then – he concluded – we have to move very quickly”.

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