spending Cuts limited to less than 800 million euros, with a first reduction of the tax benefits, and new revenue, thanks especially to the fight against tax evasion and a revision of indirect taxes, such as excise duties. These are the measures which, without prejudice to the consolidation of growth, the government intends to adopt in the course of 2017 to comply with the request of the Eu Commission of a correction of accounts, quantified by Brussels in 3.4 billion. The commitment is contained in the letter sent out yesterday evening by the minister of Economy, Pier Carlo Padoan to the Eu commissioners Pierre Moscovici and Valdis Dombrovskis.
In the letter, which confirms the continuation of the structural reforms, and anticipates that economic growth in 2016 more than 0.8% hypothesized, the government also claims that, contrary to the conclusions of the Brussels, the trend of the public debt meets the criteria of the Stability Pact, if you take in due account the relevant factors that have influenced, the subject of a Report of 86 pages annex to the letter. Factors that also include emergency-earthquake, for which today is expected to the launch of the new decree, which will cost this year, “not less than one billion euros”.
As to the correction of the deficiency, and writes a Novel, without indicating any amount, “the government is planning the measures necessary in the context of a strategy that will be detailed in the next Document of economics and finance, expected in April. “The structural correction needed to rejoin the approach path to a balanced budget”, which the Eu measure in two-tenths of the gross domestic product will be composed of “for a quarter from expenditure cuts and the rest from new taxes”.
90 percent of the cuts will cover the intermediate consumption of the public administration, the rest will derive from a reduction of deductions, allowances and tax breaks. As to the revenue side, the adjustment effort will include measures on the face of the “indirect tax” (the Vat is not mentioned explicitly), “excise taxes and a further strengthening of policies have recently been adopted, with positive results, to improve the adhesion to the tax obligations”. The composition of the maneuver, stresses Padoan in a letter to the Committee, “is conducive to growth and take account of factors of redistribution”, but it will be put into practice, “in the time that will be established on the Final” and, together with the measures to deal with the impact of the earthquake. In general, the government intends to continue on the road of reform and of a policy of stimulus to economic activity . “The pace of adjustment is too accelerated, would have a negative impact on growth at a time of major uncertainties on an international level”.
The government, in any case, dispute the assessments of the Eu on the debt outside of the line. “The relationship with Gdp is substantially stabilized in 2016, thanks to the reduction of the deficit and despite the deflation and the bad time of the markets”. The intention to resume the privatization is confirmed. The minister of Development, Carlo Calenda, has assured yesterday that the Treasury will put on the market, 29.7% of the items within the summer.
February 1, 2017 (change the 1 February 2017 | 22:14)
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