“Distance is substantial when compared to commitments of April”
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The european Commission asks the Italian government a series of clarifications on the law of the budget by Thursday, the 27 “to allow you to take them into account in the further analysis”. And this is the conclusion of the letter that the Commission vice-president Valdis Dombrovskis and commissioner for economic Affairs Pierre Moscovici have sent to the minister of the Economy Pier Carlo Padoan. The european executive wants to “explanations for the revision of targets (budget – ed.) and the gap substantially with respect to the commitments taken last spring (April, ndr)”.
In the letter, Dombrovskis and Moscovici wrote that Italy “has benefited from flexibility significant under the rules of the stability pact both in 2015 and in 2016 and part of this flexibility, i.e. on the basis of the provisions for investments and structural reforms had been granted subject to a number of conditions: use these margins to increase investment, to progress with the structural reform agenda, “present credible plans to resume the adjustment from 2017″.
“On the basis of a common vision, the Italian government is busy with his letter of may 17, 2016 (letter of Padoan – ed), to return to the adjustment path towards the medium-term objective in 2017, ensuring the compatibility with the requirements of the preventive arm of the stability pact, which was a factor key in the last report the community on the violation of ‘at first sight’ of the debt rule in 2015.”
The “preliminary” evaluation of the draft budget law suggests that “the expected change in the structural budget in 2017, as recalculated according to the commonly agreed methodology, is negative and well below the 0.6% of gdp or more recommended by the Ecofin on 12 July 2016″ (you will pass by a structural deficit, net of the effects of the economic cycle and of one-off measures of 1.2% in 2016 to 1.6%).
The letter goes on to listing the required information. Meanwhile, Brussels wants to verify whether the Italy “complies with the conditions under which it was granted flexibility for 2016″. In particular, Dombrovskis and Moscovici wants “explanations for the revision of the targets and of the waste of substance which emerges with respect to the commitments taken at the last spring”, as said. Then indicate that the financial statements “also refers to the extraordinary costs that Italy is supporting the recent earthquakes and the migration flows”.
The Commission confirms one thing stranota: “In the past has recognized the exceptional nature of such expenses”. However, remember that “the treatment of these expenses is based on the specific requirements of the pact of stability and growth, and on the principles supported by the Council and applied in a consistent manner. From this point of view, we would need clarification on the amounts included in the budget law to be regarded as ‘exceptional costs’”. The two members of the community conclude the letter by indicating that the Commission “finding that the continuation of a constructive dialogue with Italy in order to arrive at a final assessment”.
As you can see, the tone of the letter is very cautious: the preparation of the letter was laboriosissima, for hours and hours, have been filed in the words and messages. As was expected, to avoid controversy with Italy or offer to the Italian government the right to riacutizzare the polemic against Brussels, and the tones levigatissimi support a setting fact. The request for clarification on the various points reflect the opinion that as is, the budget law is not in line with the commitments undertaken by Italy just six months ago, and that this change of line is not sufficiently motivated by the financial document. This conclusion, however, Dombrovksis and Moscovici not to pull it and at least for now do not intend to pull it.
The idea on which he works as the president Juncker, who eventually took the decision to send the letter in that form, is to avoid tensions with Italy as with other countries and in case of postponing a final review on the Italian budget in December (after the referendum), or even in the spring. However, the Italian will take an effort to get closer to the positions. The word is now to Padoan. The intention of the Commission to find a compromise that remains throughout, and is highlighted precisely by the type of requests for information contained in the letter.
in Addition to Italy letter to Eu and six other governments
Italy is not the only one to have received a letter of requests for clarification from the european Commission. The group of countries under focus these days are also part Belgium, Cyprus, Spain, Finland, Portugal and Lithuania.
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