Friday , June 18 2021

Despite the Brussels pressure, the Italian budget "does not change"



conjuncture

The Italian populist government, urging the European Commission to revise its budget for 2019, confirmed yesterday that it was unwilling to abolish the risk of financial sanctions, and its implementation would still be hypothetical.

"The budget does not change either in the balance sheet or growth forecast, and we are confident that this budget will need to be rebuilt," said Deputy Prime Minister and Deputy Chief Executive Officer Louis Di Maio. 5-star motion (M5S, antisystem).

"Our goal is to keep the deficit in 2.4% of GDP and we have to keep it," the Minister said. his ally Matteo Salvini, the head of the League (right) and Giuseppe Conte, prime minister.

"We guarantee workplaces, we work from budget to reduce pensions and tax rates … If it fits better than Europe, it still continues," Mr. Salvini said.

The government's anti-corruption budget restores misery, thereby reducing public deficits and reducing public debt.

But for the first time in the history of the European Union, the Brussels government has denied this project on October 23. The entire region of the euro zone does not listen to the arguments of Italy, which will be 2.4% of GDP in 2019 and 2.1% in 2020.

According to the Commission, the measures envisaged in the budget may increase the deficit by 2.9% next year and 3.1% in 2020. In particular, it is estimated to be 1.5% in Rome, 1.2%.

The International Monetary Fund (IMF) confirmed its forecast for growth in Italy by 1% in 2020 and the government's skepticism about the reforms announced in the afternoon.

"The government pays great attention to growth and social integration," the fund said, but current forecasts predict a state debt to remain at 130 percent in the next three years.

According to Italian media, Economy Minister Giovanni Tira is expected to send a letter to Brussels next week to clarify the government's decision, which is the government's planned structural reforms and investment plan presentation. .

"Extremity Deficit Procedure"

If Rome refuses to change the budget, Rome may "impose fines of up to 0.2% of GDP (about 3.4 billion euros)." Euro).

German Chancellor Angela Merkel in Strasbourg said she tried to "strive" for the European Union's founding founder, Italy.

"Italy has adopted many rules, and now we all have the same," he said. "I hope I can find a solution".

The European Commissioner for Economic Affairs, Pierre Moscovic, also called for a dialogue that hopes to achieve "compromise."

Lorenzo Codonio, the founder of LC Macro Advisors, said Italy should "be in a" superfluid "deficit until the end of January, but in order to reach an unobtrusive European election in Italy for a three-six-month correctional plan. Then, in autumn 2019, "nothing new will happen before the new commission works."

Mr. Cottoño said that financial markets would "become regular budget regulators" in order to avoid faster action at the European level.

From the middle of May, the debate on the formation of populist coalition, the close divergence between the Italian and German borrowing doubled, and now it collects about 300 points. According to the Italian Bank, it has spent more than $ 1.5 billion over six months. It is an additional value for the euro.


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