Thursday, February 2, 2017

The tweet Began: “No maneuver impromptu” – The Republic

Padoan to the Eu: "Adjustment of accounts essential, legal proceedings, and alarming"The minister of the Economy Pier Carlo Padoan (ap) ROME – The minister Pier Carlo Padoan continues to defend the Italian position on public accounts, after the answer given to the european Union in the last few hours. However, shows all his concern with regard to the hypothesis that Brussels will open a procedure on Italy’s excessive deficit and the high debt. A possibility to avoid and that makes it “indispensable” to the adjustment of the accounts, equal to 0.2% of Gdp, and then to 3.4 billion, promised to Brussels.

Speaking in the Senate, the holder of the Finances ensures that the “measures” are necessary to adjust the accounts will be adopted at the latest by the end of April, presumably before”. No escape, as someone had suggested, fronts to the commitments requested by Brussels: in the document sent to Europe makes clear that the deficit/Gdp will be 2.1% in 2017, from 2.3 previously indicated. The Eu has demanded specific interventions to correct the deficit of 3.4 billion, and it is evaluating time commitments of the Treasury. European sources, however, have shown skepticism after the arrival of the Italian documents: “We would have expected more detailed answers”, they did know. No doubt that, as reconstructed by the Republic on newsstands, also open up the possibility of a rejection of the commitments of the Italian, and then to the commissioner.

POLICY. Now Padoan speaks clearly: you will maneuver a

But the minister Padoan there is, and after you have tweeted in the morning that Italy will not take “no manoeuvre impromptu” because the Country “will reduce debt with a strategy that protects growth”, explains the commitments in the Hall of Palazzo Madama. It is, to Padoan, “measures balanced adjustment and also support a reduction in required net indebtedness structural relative to trend of about 0.2 percentage points of Gdp”, just what is required by the Eu. On the other hand, go for the clash with Brussels is not a way desirable: “The hypothesis of an infringement procedure would be extremely alarming and would result in a reduction of sovereignty in economic policy”, details Padoan. On the horizon you would open a season of rise of the spreads with “costs far more superior to the public finances of the Country as a result of the likely increase in interest rates”.

As for the menu of measures, the government insists that a quarter of the resources will come from “spending cuts selective”, three-quarters of higher revenue, largely related to the fight against tax evasion (this item is expected 1 billion). “Excluded are interventions on Vat and tax breaks and extensions to these for further round of voluntary disclosure”, i.e. amnesty for the repatriation of capital abroad. In the alternation of cuts and supports, Padoan (who rejects “the description of the policy of the government of these years as bonus policy”) confirms that the executive Gentiloni “intends to allocate a higher amount to one billion euro, to deal with the consequences of the last earthquake and, in general, the seismic activity of these tragic months, to support the victims of the earthquake and to face the emergency”.

From the text sent from Rome to Brussels is evident, meanwhile, that the ratio of deficit/Gdp in italy will fall to 2.1% this year as a result of the adjustment required by the Eu: “taking into account the effects of the upcoming adjustments to the budget, the deficit is expected to decline to 2.1% of Gdp this year.” The Government had indicated in the programmatic Document of the Budget deficit for 2017, 2.3%: in this way it will be then complied with the request for a correction of the ratio equal to 0.2%.

public accounts
european Commission
pier carlo padoan

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