(Tiper Stock Exchange) – A corrective maneuver worth 14-15 billion a year, equal to 0.85% of the GDP: this, according to the projection elaborated by the technicians of the European Commission, is the extent of the intervention that Italy should implement to take the path of restructuring the public finances.
According to what has been learned, the accounts were made at Brussels based on the parameters contained in the proposal to reform the Stability and Growth Pact presented today and have already been communicated to the individual countries.
Safeguard measures on debt sustainability, the reference values of 3% and 60% of GDP for the deficit and debt are unchanged. At the end of the spending plan agreed by each State for the medium term (4 years) the ratio of public debt to GDP must be lower: the EU Commission presented its reform proposal on the Stability and Growth Pact with “the central objective of strengthening public debt sustainability and promoting sustainable and inclusive growth in all Member States through reforms and investments”, as explained by a Note.
“First, our proposals promote greater national ownership through medium-term budgetary structural plans prepared by the Member States, within a common EU framework with sufficient guarantees – he explained -. In this way we guarantee both equal treatment and consideration of the specific situations of the country at the same time”. So the Commissioner Paul Gentiloni at the press conference. “Secondly – he continued – our proposals allow for a more credible application as a counterpart to this surveillance framework which gives more leeway to Member States in defining their budgetary trajectories. In particular, deviations from the agreed budget would be the basis for any enforcement actions”.
Gentiloni then explained that the proposed rules “they simplify our rules and focus on tax challenges. This means taking into account the different initial budgetary positions of the Member States and their different public debt challenges. It also means relying on a single operational indicator based on the evolution of net expenditure. By focusing on spending, we also avoid the typical procyclical bias that fiscal policy has had in recent years: that is, we expanded in good times and then were forced to cut in bad times.”
Finally, according to the EU Commissioner, the proposals “will facilitate reforms and investment commitments, supported by an extended adjustment path. These should foster growth, support fiscal sustainability and should address common EU priorities such as the Green Deal, the European Pillar of Social Rights or the digital decade”