Remote question and answer on the Italian public debt between the European Central Bank and the Minister of the Treasury, Pier Carlo Padoan. In the March bulletin published this morning, the Eurotower writes that our country and Belgium continue to present a "significant deviation from the structural effort required under the debt rule", even if the EU has decided not to open an excessive deficit procedure, without taking into account, "as an aggravating factor, the insufficient consolidation" in 2014-2015.
The ECB document also states that, "as regards the countries subject to the preventive mechanism, the improvement of 0,2 percentage points in the structural balance that is forecast for Italy in 2015 remains below the 0,4% of GDP which had been recommended by the Eurogroup and reflects a reduction in interest charges”.
to these findings Padoan he replied indirectly: “The degree of trust and reputation of each Member State is associated with its ability to comply with the rules – said the minister, speaking at the Luiss University of Rome for the awarding of an honorary degree to Professor Jean Tirole -. However, if the rules prove inadequate to deal with exceptional circumstances, such as a prolonged recession, respect for ex ante efficiency can lead to counterproductive behaviour, up to the failure of the institutions”.
Furthermore, according to Padoan, “the mechanical application of the debt rule would lead to counterproductive dynamics and the evaluation of fiscal policies based on an imprecise measurement of the output gap, similarly, would produce effects contrary to those desired. Therefore, the building of mutual trust is essential for the strengthening of the European institutions. Therefore it is essential that the rules ensure mutual coherence between ex ante efficiency, compliance with the rules, and ex post efficiency, the proper functioning of the economy”.
In any case, "as also said by the EU Commission, the debt is respected even if the reforms are carried out decisively", concluded Padoan.
