(Finance) – The Minister of Economy, Giancarlo Georgetterecommended to the ministers of government Melons extreme attention to the use of public resources and strict monitoring on the trend of spending. The invitation was extended to government colleagues during the Council of Ministers. Giorgetti intervened to illustrate the procedures envisaged by the new European Stability Pactunderlining how the downward trajectory of net public administration expenditure is the basis for evaluation by the European Commission of the new Medium-Term Budgetary Structural Plan, which must be transmitted to Brussels by September 20th.
The Plan, Giorgetti explained, will contain the indication of the deficitbut the novelty is that the reference variable for the assessment of conformity by the Commission is represented, precisely, by the aggregate of net expenditure, i.e. expenditure not financed by new revenues or European resources, without taking into account the passive interests on the debt and the cyclical effects of particular types of expense. The ex ante identification of the net expenditure trajectory of the Medium-term structural planthe minister then reiterated, requires extreme attention in planning the use of public resources as well as the need to implement effective monitoring of the actual dynamics of the spending aggregate, during the year and for the entire duration of the Plan.
Illustrating the new budget proceduresGiorgetti recalled that the return from deficit excessive is expected to last 4 years, extendable to 7 if the Structural Plan provides reforms And investments to answer the structural difficulties of the country and the recommendations made by the Council within the European semester. Italy aims to have the green light for the 7-year period. The Minister finally underlined that the goals programmatic multi-year for the trajectory of net expenditure remain valid for the entire duration of the Plan and may be revised only in particular cases (such as the installation of a new government, objective conditions that prevent, more than 12 months before the expiry, the implementation of the plan itself).
The objectives will be the subject of a monitoring annual the outcome of which will be reported in the Annual report on the progress made in implementing the Plan, which must be submitted by 30 April each year. reform of the European budget rules has not changed the rules relating to the Budgetary planning document (DPB), which must be submitted to Europe by 15 October each year. The DPB, which contains both the updates of the macroeconomic and public finance forecasts and the main areas of intervention of the budget maneuver, must ensure compatibility with the net spending path indicated in the Structural Budget Plan.