The public accounts, the Eu wants measures immediately: Italy at risk, commissioner – The Republic

Jean-Claude Juncker (ap) BRUSSELS – There is a margin of ambiguity in the letter that the government has delivered yesterday evening in Brussels that could be costly to Italy. Also the infringement procedure the european failure to respect the debt rule. A narrowing of sovereignty in the field of economic and risk markets, which may make it difficult for the Country in terms of spreads and interest payments on the d ebt well beyond the 3.4 billion of the manoeuvre required by the Union. This is the scenario that now opens wide in front of the Chigi Palace and the Treasury, with the european Commission that, although with reluctance, ready to commissariare Rome. But the final decision in Brussels has not yet been taken, it will be dramatic, the whole policy and will arrive shortly.

The last hours of the negotiations yesterday were in flames, with the triangulation between the staff responsible for the Eu in economic Affairs, Pierre Moscovici, experts Piercarlo Padoan and Palazzo Chigi, where the premier Paolo Gentiloni has followed the negotiations on the drafting of the letter. A dialectic based on two different approaches, with Padoan’s determined to give Europe those answers are timely, measurable, and immediate in order to avoid the procedure, while the premier insisted to be more evasive and move to Def to mid-April, the implementation of the measures, without putting in a real manoeuvre bis.

After having granted, by stretching the rules, 19 billion of flexibility in the last two years to which we add the other 7 in 2017, the Commission has asked Rome to be at least 3.4 billion in order to save appearances, and to reverse the debt dynamics, the true Achilles heel of the Italian leavened around 133% of Gdp. But with the Country that could be going to early elections the leader of the majority parties, Renzi is in the head, have pushed to avoid an unpopular manoeuvre bis. Until the last negotiation on the timing of the intervention, in the center the formula used by the government: “The measures will be taken within the time span of the Def”. The Treasury explained that it could arrive immediately or April, along with the Def. A choice which then leaves space for negotiations within the government and with Brussels, and which will affect also the macroeconomic data for the fourth quarter of 2016 to the middle of the month. But the ambiguity of the formulation , the possibility that interventions to be announced in April and implemented, after, place a burden on the Commission, where many do not want to deal beyond. The official sources of the Commission yesterday have not commented on the letter, which arrived late in the evening, but before reading the final text warned that if he remained ambiguity as to the timing and impact of the measures, the game was to be complicated and the margins to save Rome would be drastically reduced. The decision now rests with the president of the Commission, Jean-Claude Juncker, has always been committed to help Italy.

the Fundamental could be a face-to-face with Customers at the european summit tomorrow in Malta. For the Juncker looms a decision politically difficult, especially if Italy goes to early elections and there will not be a Parliament that can approve measures: forgive Rome, to postpone the decision to after the vote with the risk of going to clash with the new government that is unlikely as a first act would do a corrective action (which may be late) and lose face, or act immediately by putting Italy in the procedure with the danger of suffering an electoral campaign all against Europe?

on The 13th of February, Brussels will publish the winter economic forecast in which it is likely to say that Roma is at risk of a significant deviation on the accounts. Then at the end of the month could go the way of publishing along with the “country report”, the report on the Italian debt, by starting the practice for the procedure. A decision is considered politically difficult because it would be the first time that a country with the deficit to below the 3% would be commissioner of the debt. But the danger is the elections, and faced with the strengthened wing of the popular Commission, headed by vice-presidents Dombrovskis and Katainen, supported by the governments of penalty takers, this time the efforts of Juncker and Moscovici may not be enough.

Topics:

public accounts

Eu

european Union

Starring:

Piercarlo Padoan

Jean-Claude Juncker

pierre moscovici

Paolo Gentiloni