“Certainly, many of us have called for Europe to take note of the fact that we cannot continue as if nothing had happened. Especially this year, and it is complicated for many Countries”. This was underlined by the minister of the Economy Pier Carlo Padoan, leaving the meeting of Ecofin in Brussels, and with reference to the higher costs that will face Italy for the earthquake.
“An infringement procedure (of the Eu rules on public budgets – editor’s note) it would be a big problem for the uk in terms of reputation and in this recent period has strengthened and built, it would be a U-turn compared to everything that has been done so far”, he said and Began talking about the response to the european Commission has requested Italy to define the precise terms of a budget for an additional 3.4 billion by next Wednesday.
Padoan he added that the response to the European Commission, which has asked for a budget for additional, will arrive by the first of February. “The Commission awaits a response to the first of February, and this answer will come”, but the Government will proceed with new “concrete measures” for the earthquake as early as next week, “regardless of how you will respond to the request of the Commission to make an adjustment,” insisted the minister of the Economy.
“Surely the expenditure, alas, necessary for the emergency and for reconstruction will be considered, there will be an increase in spending, I look already the concrete measures next week from the Government, this regardless of how you will respond to the request of the Commission to make an adjustment,” he explains Padoan. A concept made by the premier: “The letter to Juncker to Gentiloni first of all, remember the tragedy and the continuity of this tragedy, and then the fact that Italy will spend what it takes”, said the minister.
Padoan has not determined the terms of the response. In substance, the ilo, the holder of the Economists believe that Italy should not risk a european procedure for the violation of the stability pact (in this case it is the failure to respect the rule of reduction of the public debt, the third largest in Europe after Greece and Portugal) for the effects to reputation of the country: the Treasure looks very attentamento to the increase in the spreads of securities the ten year (on the increase) and the medium-term will be characterised by political uncertainty. At least until you will understand if and when you go to the polls.
For this reason, the response in Brussels on the budget request, a request is objectively limited compared to the deviation from the target in order to respect the stability pact (0.2% of gdp vs. 0.8%), has a value that is purely political. The head of the Treasury indicates that the risk of a procedure should be avoided. That, in substance, of the signs in Brussels must be given. This, however, does not mean that should be taken necessarily of the measures now. The government has to say automatically yes to manoeuvre additional. And here is the margin of negotiation between Rome and Brussels. For days, in fact, the Treasury makes it clear that any measures must be included as part of the fundamental choices of economic and fiscal policy that is written in the ‘finanziarià 2017. And that the moment of decision is the document the economic of April.
The concern of the Novel is that, caught in the whirlwind pre-election, Italy is located at a certain point, with a perspective of months interwoven with political uncertainty and questions about the stability of the government (current and future), increasing the sensitivity of markets to the Italian case, with a country classified by the rating agencies in the category B, in a stage of slow approach to a change in the orientation of monetary policy. All factors that do not make it ‘convenientè a loss of reputation policy on the management of public finance.
“The plot of the game, after Brexit, and after the victory of Trump, is changed to said still – Europe should take note of its successes but also new challenges. This was the theme that, beyond the specific issues, we have shared in many discussions”.
“The new context is complicated to decipher, because of the Us, there will be the expansionist stimuli, which do good to all, but also things that are very worrying. We discussed a lot of this return to protectionism which, if it were to catch on, it would be a harm because we all know that trade integration is a powerful source of growth, of which we are the beneficiaries,” said the minister.
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