Parliament must speed up on Fiscal compact to arrive at a "guideline act" in view of the European Council of 28 and 29 June. This is the indication that emerges from the Foreign Affairs Committee of the Senate, which is examining the ratification of the treaty signed in March and which will enter into force next January.
But the fiscal compact comes heavy criticism from the president of the Finance commission of Palazzo Madama, Mario Baldassarri: "The European Union is substantially making the same economic policy errors made by the United States in the XNUMXs", is the premise.
"The so-called tax compact imposes constraints on the public debt reduction path, proposing a vision that seems to completely ignore the role of GDP growth or stability as a necessary tool to achieve the envisaged objectives of financial balance", Baldassarri argued in the meeting of the commission called to express a opinion on the measure.
“Predicting a percentage ratio between debt and GDP risks translating only into a mere petition of principle, if we continue to ignore that the growth potential of each country is a precondition for its financial stability. Consequently, in an economically depressed country there will always be a useless pursuit of a balanced budget, where it is not possible to reverse the trend of the economic system”.
There are two examples: Greece and Italy: "The European Union seems to have decidedly taken the wrong path when loans were decided to be granted to Greece with an interest rate which makes repayment extremely unlikely, unless by imposing a rate of annual growth absolutely unrealistic”. As for our country, “the case of Italy is emblematic, since it would be necessary to reduce the deficit by 3% a year for twenty years, in order to bring the debt/GDP ratio back to 60%. This would imply the need to launch financial maneuvers worth 45 billion a year for twenty years, with clear recessionary effects on the economy and substantially indefinitely postponing the achievement of the desired balance sheet”.
