The EU promote with reserve the Italian maneuver. For our country, as well as for seven others (Belgium, Spain, France, Portugal, Slovenia, Slovakia and Finland), "the budget planning documents involve a risk of non-compliance with the Stability and Growth Pact in 2020”, writes the European Commission in its assessment of the financial maneuvers of the Member States.
The implementation of the financial maneuvers of these Member States “could lead significant deviation from adjustment paths towards the respective medium-term budgetary objective”, continues the Commission, adding that in the case of Italy, as well as Belgium, Spain and France, “non-compliance with the debt reduction parameter is also expected”.
“Among the budget planning documents at risk of non-compliance, we are most concerned about those with high and insufficiently reduced debt levels: Belgium, Spain and France have very high debt-to-GDP ratios, almost 100%, while Italy exceeds 136%. And we don't expect these countries to meet the debt rule,” said EU Commission Vice-President Valdis Dombrovskis.
“These four countries – he continued – have not exploited the favorable economic times sufficiently to put their public finances in order. In 2020 they expect to have no significant fiscal adjustment or even fiscal expansion. This is worrying, because very high debt levels limit the ability to respond to economic shocks and market pressures".
Therefore, “we invite all Member States at risk of non-compliance with the Stability Pact to take the necessary measures within the national budget procedure to ensure that the 2020 budget complies” with the Pact itself, concluded Dombrovskis.
