The European Commission will not reject the Stability Law. This was stated by the Minister of Economy, Pier Carlo Padoan: “This maneuver will not be rejected – said the number one of the Treasury -. I think there may be remarks and observations on specific measures as it should be but this will be seen in the context of the excessive imbalance monitoring procedure. Some European policy makers finally said that the important thing is that you cut taxes".
" tax burden – continued the minister – it will drop from the 44,2% now forecast in the trend to 42,4%”. The reduction in the tax burden linked to the Stability Law, says Padoan, will have “a permanent nature: in 2016 we completely defused the clauses on VAT and excise duties for 16,7 billion. In 2017, therefore, 14 billion out of the 26 envisaged remain to be defused, and in 2018 around 19 billion out of the 29 in the clause. Out of 72 billion in safeguard clauses, a cut by half is already foreseen in the stability law, i.e. 36 billion in the next three years".
As for the deficit, Padoan says he is sure of its decline next year: “The deficit will decrease from 3,0% in 2014 to 2,6% in 2015 to 2,2% next year. These are the numbers. I said that the logic of the EU flexibility clauses is to induce governments to implement reforms to the end. I don't see any risk in using these fiscal spaces, they are legal". On the migrants clause, the minister awaits the Commission's assessment.
The imperative of the stability law, rather than, as in the past, the control of the deficit, today is, according to the Minister of Economy, "the revival of employment and economic growth, not without continuing on the road to recovery”.
“In 2016 – explains Padoan – thenet borrowing drops to 2,2% and debt falls after many years of growth. The expansive dimension is determined not only by the aggregate, but by the composition, by the various measures: the cut of the Tasi, the Imu on bolted plants, employment incentives, second-level bargaining, which is important because it affects potential growth both through greater productivity and for the increase in demand through a higher income for workers and the reduction of the tax burden".
On the front of the spending reviews, Padoan explained that "there was a political choice not to include the cut in tax expenditure, but next year more can be done also thanks to the reform of the public administration", while on the choice, disputed by many, to increase the limit for cash purchases Padoan claims his change of opinion.
“In the case of cash – explained the Economy Minister – I have changed my mind. I claim the right to do so. Having looked further into the matter, the evidence now tells me that there is no correlation between the cash limit and the size of the underground economy. The more flexible cash limit - explains the minister - also produces benefits in an economy in which the electronic payment system is less widespread than in other countries, such as France for example".
