From our correspondent
BRUSSELS – The European Commission has decided The financial maneuver was promoted with reservations. The draft budget law is “not fully consistent” with the Council’s recommendation last July, but it is “not a rejection, but rather a provocation.” Advocating for prudent fiscal policies and full use of the National Investment and Reform Plan in investments and reforms», explained the Economics Commissioner Paolo Gentiloni.
Giorgetti: “Everything is as expected.”
Economy Minister Giancarlo Giorgetti did not express surprise: “We accept the committee’s ruling.” “Everything is as expected, despite the legacy of negative energy impact and fantastic rewards, we are moving forward with healthy realism,” he commented.
Inscriptions
Brussels has made three crucial points: First Net primary spending in 2023 is higher than expected at the time the recommendation was made (0.8% of GDP) Because of the super bonus tax credits, which affects the overall rating; Use Savings associated with the phasing out of energy support measures No to limit Impotence But to do something else; The limited scope of the employment effects of the tax cut. Therefore, the EU Commission calls on Italy to “be prepared to adopt the necessary measures within the framework of the national budget process to ensure that fiscal policy in 2024 is in line with the Recommendation.” However, this does not mean that Italy should prepare to take corrective action. “Our calls are united to different groups of countries. And “For countries that are not fully compliant, there are calls to take appropriate action and not implement corrective measures,” Gentiloni explained. Answer a question.
procedures
In total, nine countries are “not in full line”, including Italy. The other countries are Germany, Austria, Luxembourg, Latvia, Malta, the Netherlands, Portugal and Slovakia. However, France risks not complying with the Council’s recommendation along with Belgium, Finland, France and Croatia due to excessive public spending.. Full promotion only for seven EU countries: Cyprus, Estonia, Greece, Spain, Ireland, Slovenia and Lithuania.
Is everything okay then? Not really, because the Stability Pact has been back in force since January, and the July recommendations were the first “quantitative” recommendations since the rules were suspended in 2020. After the European Championships in June “The Commission intends to open excessive deficit procedures based on the results of the 2023 budget data.”The Vice-President of the European Commission noted Valdis Dombrovskis.
Italy is therefore at risk from this measure. Brussels concludes its opinion by clarifying that in 2024 Italy’s nominal budget deficit will reach 4.4% of GDP (higher than the 3% expected in the treaties), and public debt at 140.6% of GDP in 2024 (higher than the 60% set by the treaties). ). Treaties) “but it is 6.5 percentage points lower than the rate at the end of 2021.” Furthermore, according to Brussels, Italy “has made limited progress with regard to the structural elements of the budget recommendations formulated by the Council on 14 July 2023, and therefore calls on the Italian authorities to accelerate progress.”
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