How would you rate Pier Carlo Padoan, OECD economist, Pier Carlo Padoan the Italian Minister for the Economy? The charge of the department of Via XX Settembre thinks, but deviates the ball to the corner, “I’m a professor – he says – the votes are usually give them to others. I prefer not to give myself. “
Minister, yet between judgments of the Constitutional Court on Pensions, the process of privatization, spending review, derivatives and negotiations on the Greek crisis of examination subject there would lot. Starting precisely from the hole opened by the judgment of the Constitutional Court on Pensions: 19 billion and the treasure that vanishes …
“Well, let’s start with those. We proceeded to plug the gap, and the arrears to be paid cost us 2.2 billion. Then gradually to speed intervention on treatment of mid-level will cost us 500 million a year, starting in 2016. But this story has an aspect that puzzles me and which, as it were, take note. “
What?
“What the Constitutional Court claims not to have to make assessments on the economic consequences of his actions and that there was an estimate of ‘impact, that it was not clear the cost. Now, I do not know who was supposed to quantify it, but I note that in a dialogue of cooperation between State organs independent, as a government, court, ministers and Attorney General would be the most appropriate information sharing. We all work for the good of the state. I’m not saying of course that you have to interact in the formulation phase of the judgment, because the autonomy of the Court is sacrosanct, but if there are judgments that have an implication for public finances, there must be an impact assessment. Also because this evaluation serves to form judgment on the principles of equity. Equity is also that of the relationship between old and young. This has been lacking and I hope that in future the interaction is more fruitful. “
A hole covered on pensions, a check is not yet collected on privatizations planned. EU Commission and IMF criticize us. Why the delay?
“I would like to point out that while the Commission and the IMF for the first time in many years agree to promote measures on the reorganization and reform of the Italian government. Privatization there is a delay, if we calculate the revenues we thought of getting. But I see it more as a forward displacement of the calendar. We are planning the Post Office, which needed a period of strategic redevelopment. We are launching the ENAV. We are accelerating the real estate sector, which must be enhanced before ending up on the market. And then there are the railways, which are the most complex machine, more complex Poste. Our goal is still close to 2016 “.
Then there would be cuts in spending, the spending review.
” The objective It remains that of Def, 10 billion of savings. There are fifteen chapters, but it is early to talk about it. We had meetings with Yoram Gutgeld often, these are the figures expected. “
U No program that was made net of unknowns that can fall on the markets. And what is more frequently evoked is the exit of Greece from the euro. Also yesterday sparks between Athens and Berlino.La considered possible or probable? There is also talk of a referendum in Greece.
“We start from the facts. I believe that the problem of debt greek excessively dramatized in an instrumental way by everyone, including the IMF that this has a different view from that of the Commission. Debt is not the real problem, is sustainable with reasonable growth and accounts in order. The timing of an agreement is still objectively tight, I think it’s time that the government greek put proposals on the table credible and concrete action on pensions, labor market and tax system. I do not pronounce on the referendum, I noted that though the polls show that the majority of Greeks are in favor of a stay in Athens in the Eurozone. “
In the case of output had He said he was not worried about a possible contagion to Italy. The still think so?
“The contagion of the short term does not bother me because there are ongoing interventions of the ECB, and the Quantitative Easing is a shield that works. In addition, the Italian situation is much more solid than they were two or three years ago. “
all right then?
” The real problem in the medium term. If there was a Grexit, if Athens to abandon the euro, monetary union would become a different animal. A set from which you can get out, it would not be irreversible. And this, again in the medium term adds a possibility to those that currently exist. “
This would impact on Italian government bonds?
“That would change the prices, where there were tensions. If we get into a situation in which there is one more chance, one exit from the euro, the system becomes generally more fragile less able to absorb the shock. “
Meanwhile along discussed in Brussels on Italian banks and state aid for the bad bank that would relieve institutions from bad debt. But in Europe we are regarded with suspicion: fear of state aid. Yet Germany has € 250 billion of guarantees on their banks.
“Some countries have taken measures to support banks before the European rules have changed and so avoided the objections of use state aid. This government took office in things already done, when the rules were changed. The doors were already closed. “
So how do we get out?
” The effort that we are doing is to build a side level technical measures compatible with European standards. The other, at the political level, there is an effort to emphasize that at this stage of recovery from recession, measures are important to help the financial system to heal. It is not just a matter of competition, but also of economic stability as well as Margarethe Vestager involves Commissioner Hill and Vice Dombrovskis’.
The government is willing to suffer setbacks on debt in order to help banks to devalue faster credit losses?
“If you lighten the tax burden on banks that improves their balance sheets and, hopefully, he pushes them to do more credit. But you have to balance this type of incentive and the impact on the budget. “
One of the banks most discussed is the Monte dei Paschi. Are not you afraid that it can become prey foreign?
“We are following carefully what is the Mount as well as other banks. If there are combinations that produce the biggest banking entities reducing their number it is a good thing, and it’s one of the things that the law on Popular seeks to encourage. It is market operations, we observe them. “
Do you plan to bring the responsibility on the Agency of revenue by the Ministry of Economy at Palazzo Chigi?
“The Inland Revenue is a complex organism and has many functions. Before you figure out who has to be vigilant, we must figure out how to change and what are its functions with the entry into force of the tax reform. One has to wonder what is its optimal form and how it should be structured its leadership. Matters riflessioneAl same time we are facing the problem of managers demansionati, with a decree that will be ready soon and we are studying carefully. Because even in this case the effects of a judgment of the Constitutional Court …. “.
Are you intervened sull’Ilva, CDP has entered the hotel sector, the government He pushes for broadband and promises more than 6 billion investment. But if the Chinese buy Pirelli stay at the window, because it is a market problem. Are you liberal or interventionist?
“This is the stage where we have to repair the damage of the Great Recession, ten points of GDP lost by Italy. For this we need a combination of strategies. Reforms to give more and more competitive market. A strong fiscal policy. But there is also a strong need for investment, and it is said that they can only come from the private sector. We are ready to do our part. “
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