(Finance) – The Minister of Economy, Giancarlo Giorgettiexplained that in drafting the Budget Law “the discussion within the executive had to identify a synthesis between the different requests and the internal and external budget constraints. It was not an easy job at all, but I believe that the best possible was done, on the one hand, to provide concrete responses to immediate needs and, on the other, to lay the foundations for the gradual implementation of the legislative program”. Cel course of aaudition on the maneuver before the budget commissions of the House and Senate, Giorgetti added that economic growth in 2023 could be revised downwards compared to the 0.8% estimated in the budget plan.
“The activity does not differ from what was estimated when drafting the Nadefwhich foreshadowed a gradual recoverywith a last quarter of the year in further improvement compared to the third – stated the minister –. Our short-term modeling, in light of the most recent data, confirms these indications”. “However – he added – if the preliminary estimate relating to the third quarter were to be confirmed, the growth objective for the current year contained in Budget planning document (0.8 percent) could be subject to a downward correction, albeit limited. At present, the impact on growth in 2024 is negligible.”
“The charges of the debt they are also conditioned by the creditworthiness of our country, which in turn is linked to the growth capacity of our economy and the adoption of sustainable and responsible policies – Giorgetti then underlined -. On this we have given a precise signal, which investors seem to have appreciated”. “The public deficit is in fact expected to fall below the theshold of the 3 percent by 2026, to comply not only with European constraints, but also to achieve the necessary consolidation of the debt stock” added the Minister.
“The trend of debt/GDP ratio of the coming years is strongly influenced by the increase in cash requirements attributable to incentives buildingsin particular the superbonus”, underlined the Minister underlining that “spending for interests passive in relation to GDP, it is expected to reach 4.6 percent in 2026″, an estimate developed considering a progressive increase in returns also in the coming years, although at a slower pace than that which took place starting from the end of 2021. The second factor that limits room for manoeuvre, Giorgetti specified, “is represented by the trend in spending on social benefits”.
Minister Giorgetti then assured that “the maneuverconsistently with what is stated in the Budget Plan Document presented to Commission European last October, complies with the Recommendations received from the European Commission for 2024″.
In matter taxGiorgetti explained that the cut of contributory wedge by 6 percentage points for i incomes up to 35,000 euros and 7 points for incomes up to 25,000 euros is considered “fundamental by the government” and necessary to “safeguard the stability and the cohesion social”. The intervention is fundamental, reiterated Giorgetti “to support the incomes and consumption of workers, in particular those with lower incomes, who have suffered a significant loss of purchasing power attributable both to prolonged inflationary phase, and the failure to renew employment contracts in 11 different production sectors”. Faced with such inconveniences “the State cannot remain indifferent but, on the contrary, must work to safeguard stability and social cohesion. We also believe that this support can help mitigate wage pressures,” she concluded.