The premier Enrico Letta it was said of course that Italy will be able to reduce the ratio between public debt and GDP as early as 2014, thanks to the combined effect of the measures envisaged in the Stability Law and the privatization plan that the Government will present this week. "The budget, plus the privatization plan, will be able to reduce debt starting next year: it will be the first time for 5 years and it is very important for our credibility", said the Prime Minister at the summit on Italy organized by the Financial Times.
Last week the European Commission did not recognize Italy the requirements to enjoy some margins of flexibility on the public finances and on the 2014 deficit, noting that the trend of the public debt is not sufficiently favourable. Letta noted that in this phase "we have unions, people and politicians at the same time who are asking for less rigor, while the European Union is asking for more rigor", but "cannot afford to put money in the freezer".
Meanwhile, again with regard to debt reduction, the Premier announced that "this week there will be an important event, we will present the privatization plan which is being discussed in the Ministry of the Economy”. Last Friday, responding to the European Commission's criticisms of the stability bill, Treasury Minister Fabrizio Saccomanni said that "several billions" are expected from the review of public spending and the privatization programme.
As for the economic situation, while “2013 was an important year of political and economic transition in Italy – continued Letta at the FT summit – 2014 will be a decisive year for Italy. This quarter we expect to solve the growth problem”, while continuing to consider “fiscal consolidation a mantra, an important obligation, a duty that we intend to respect”.
