The soaring interest rates on the public debt, has left an accelerated behind the front of the minister of the Economy, with Brussels, so he can send a new letter to the European Commission to remedy quickly to errors of less than a week ago. The reason it said the same Pier Carlo Padoan in a hearing in the Senate Budget committee: "to Spend resources, it is preferable that payment of interest on the debt", so it is necessary to "avoid that increases the interest expense on the public debt," that in the last year was reduced to 17 billion euros, equivalent to a point-of-Gdp. A ver y sore, to the concern of the markets for an Italy that was still close between the demands of Brussels and the needs of policy that has not yet shelved the sirens of a new campaign. The rest is under the eyes of all the tension that is being felt to be particularly pressing on debt securities issued from Rome, with the Btp ten year on Tuesday, have indeed recorded a slight easing of rates a decrease of 2 basis points and stood at 2.35%, but in the meantime, the gap compared to the yields paid by germany, the spreads, also began to grow: at the end of the day came to 200,2 basis points, on the highest since February 2014 and still in growth compared to 199 points on Monday. A trend that is concerning even the minister of Foreign affairs, Angelino Alfano, cameras diMartedì he should declare that the one linked to the spread is "a situation that does not give peace of mind but that our Cou ntry may face. We can handle it", not without adding that "as long as there was Renzi there has been the spread, is not his legacy."
From his side and Began trying to reassure the markets as it can, hoping to fall permanently by the wayside, the ” no to Brussels, you would read between the lines of the first letter sent to the Commission the first of February last, and which was withdrawn at the words even after 20 hours. Then he reinforced the concept: "the hypothesis of a possible infringement procedure is alarming, and should be avoided", an adjustment is, therefore, "essential" because the procedure would result in "a subtraction of sovereignty on policy choices and higher costs the public finances of the Country, then the subtraction of resources for growth and employment, as a result of the likely increase in interest rates that are already affected by the increased instability at the european level".
As at the european level, as is clear from the minutes of the discussion in the board of commissioners of the 17 January this year the european commissioner for Economic and monetary Affairs Pierre Moscovici he acknowledged that the Italian government has been given a little time to respond to the letter sent to him by the European Commission around mid-January, which called to Rome to illustrate in detail the structural measures aimed at correcting the deficit for 2017. For his part, the president of the Commission Jean-Claude Juncker, convinced, especially in the light of the case of Lithuania, that the rules of economic and fiscal governance of the community should be corrected, it pushes because the project team tasked to revise stability to produce results "as fast as possible". Despite the warning on the little time available, you can still read in the minutes, Moscovici "has considere d that the Italian authorities should take a commitment to adopt specific measures of the budget". Less forgiving of the French commissioner the vice-president of the Commission Valdis Dombrovskis, which "has explained that Italy respects the rules of the stability pact concerning the deficit, but that is significantly further away from the lens with regard to the public debt, which represents the 133,1% of Gdp. That is why the Commission is obliged to draw up a report under article 126(3) of the Treaty on the functioning of the Eu". Dombrovskis in the course of the meeting "has reported regular contacts with the Italian authorities, aiming to help Italy to return to economic governance which are in line with the stability pact".
From here, the letter from Brussels to Rome which he saw agree with the members of the Commission. And, according to the version of Padoan "is part of a procedure physiological and consolidated". The minister, on the other hand, now you remember that Italy was "already the subject of procedures for excessive debt in 2014 and 2015. In both cases the process was concluded without the opening of the procedure". And so, in the words of 2 February was followed by the first the facts: on Tuesday, Padoan he I send a second letter to Brussels addressed to Dombrovskis and Moscovici. In the message that with a game of words Padoan has called, not "a second letter to the Eu, but the completion of", asks to extend until 2020 the split payment, which would have expired at the end of 2017. This is the mechanism that provides that l'Vat on the supplies to the public administrations to be paid to the Tax authorities directly by the public administration without passing through the coffers of the private, formalizing at the same time the request to verify the possibility to extend the authorization also to entities and transactions that initially are not included in this scheme, initially limited to the purchase of the public administration. In the letter it is underlined that the scheme of the split payment has met with very satisfactory results to the revenue tax without, however, side effects from the side of the suppliers thanks to the efficient running of the Vat refund. According to rumors, one of the hypothesis is the extension of the new system of Vat to public companies. Also why it is important to understand how the regime would apply between private without food avoidance.
Following are the "measures" for the adjustment of 0.2%. As he writes the Treasure in Brussels, the adjustment requested by the Eu, will come with approximately 2.5 billion more revenue and the rest from the spending cuts to achieve the required total of 3.4 billion. In particular 0.05% will come from the reduction of the spending (of which 0.04% are from the intermediate consumption and the remaining 0,01% from tax relief). The remaining of 0.15% will be obtained through the increase of revenues of which: 0.06% by measures strengthening the fight against tax evasion (split payment included) and 0.09% from excise tax and other taxation of indirect. Calculator the hand to 0.15% of gdp is equivalent to 2.55 billion euros., while 0.05% is equivalent to 850 million, for a total of € 3.4 billion. The consolidation will come so soon. Probably by the end of march, when the government will have available the figures of Istat on the accounts 2016, will be approved the first measures, in order to obtain a complete picture before the Final of April. Padoan in Commission reaffirmed the composition: a quarter of spending cuts and three-quarters of the new revenue with about a billion from the strengthening of measures to fight against tax evasion. The minister then explained that there is the government’s attention also on the Web Tax, and on the taxation of Airbnb. Are "areas to explore" and on which the government wishes to intervene, perhaps with the next Budget. Instead, he assured that the measures that will be adopted will have an impact on the costs of goods and services: it will therefore not be touchedroad haulage.
The inbox is not a "manovrina," he however stressed Padoan: "I Prefer to talk about measures of adjustment that have a component expansive". The minister has therefore insisted on "further measures for the earthquake in the broadest sense, measures of reconstruction, and the safety measures that are excluded from the structural balance. A billion hits on debt, not on the structural adjustment". Of the rest, according to his colleague Alfano, who represents Rome, abroad, the maneuver is not needed. "I have my idea, which I also expressed in the Council of ministers and to Padoan: we need to negotiate with the Eu, without tearing the canvas, but reabsorbing" with other items, from immigration to ricollocamenti the earthquake, the numbers necessary, he said replying to a question of Giovanni Floris to diMartedì. "With the previous government, we have embarked on an arduous journey of growth, and we can not allow that there buttino of the sand bags, then you should negotiate with Europe to deal with" this hole "in a broader dimension," he added, and about the risk of infringement proceedings has argued that: "There are Countries that have collected as you collect the newspapers arrears, I don’t think helmets of the world".
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