Free way to the Final, Gdp at 1% in 2017, and a deficit of up to 2.4% – The Republic

ROME – The growth will stop at 0.8% this year and 1% next year, and the deficit/Gdp ratio will amount to 2.4% this year and next year to 2%, but with a possible extension of a further 0,4%. It is announced by the premier, Matteo Renzi, in a press conference on the update note of the Def, the Document of economic and financial as soon as approved, at the end of a Council of Ministers began with over an hour of delay, and finished after just 50 minutes.

Renzi has made clear immediately that by 2017 “Italy will ask for a debt by a further 0.4 percentage points for the earthquake and for the management of immigration”. And therefore the next year the deficit could reach to 2.4%: this is not asking for new flexibility, states the premier. And, in fact, in the afternoon, the sources of the Eu Commission had reaffirmed what was already leaked in the previous days, and that is, there is no negotiation of the flexibility in the course with Italy, and that the updated figures of the new Def would have been valued “in accordance with the deadlines”. “There is no flexibility in this update Note of the Def – objects, however, Renzi – because of a decision that does not convince us it is decided that it is only once and we used last year. For me it is an error, there is a 0.4% to a maximum of the exceptional circumstances, that is something other than the flexibility and relates to elements that no one can contest that you are the earthquake, and immigration”.

The estimated Gdp for this year is substantially aligned to that of the main international economic institutions (of which coincides with that of the Oecd) and national (Prometeia estimate a little less, 0.7%, such as Confindustria). A few days ago, the minister of the Economy Pier Carlo Padoan had disputed the estimates of Confindustria, emphasizing that the government “had better”. But today, he admits Renzi, has prevailed instead, “St. Prudentius, line Padoan. It is not the line of 7.8% growth proposed by the Chigi Palace”, says the premier, adding, however, immediately: “Is a joke”.

TABLES How to change the numbers in the Def

At this point, the expectation is concentrated on the new Budget law. Renzi dismissed the question saying that “taxes will not increase, there will be measures on the competitiveness, no safeguards, we will put the most money on health care”. Which results in yet another confirmation of the sterilization of articles of the Vat increase (the cost is about € 15 billion) of healthcare expenditure is already established and probably of the interventions anticipated in the past few days: the plan for the “industry 4.0″, the confirmation of the ecobonus for 2017, the renewal of contracts of the Public Administration (€700 million). And then there is the chapter to a pension plan, which includes the Bee, the early exit, not only that, but also the doubling of the fourteenth to the recipients of minimum pensions: in the field about a half billion.

A maneuver that could reach up to 24-25 billion, but will have to include cuts, as well as a search of additional resources to be found mainly between the spending review and the return from foreign capital.

Topics:

Final

Gdp

deficit, italy

council of ministers

the law of fiscal 2017

Starring:

Matteo Renzi

pier carlo padoan