Economy Minister Pier Carlo Padoan is optimistic about the ongoing negotiations between Italy and Europe, through which our country aims to obtain the now famous budget flexibility.
"Growth is strengthening and public finance is under control," said the head of Finance at the end of Ecofin in Brussels. The Eurogroup yesterday warned Italy of the risk of a significant deviation from its fiscal targets, even if it were guaranteed all the room for maneuver it required.
The Renzi government has increased this year's deficit from 1,4% to 2,4% of GDP, precisely because of the reforms launched over the last 2 years, the investment policies implemented and the expenses relating to migrants and security-
To date, however, Brussels has authorized Italy to raise net debt to only 1,8% of GDP, postponing the judgment on further requests to May.
"I am convinced that there will be a positive evaluation of these measures", assured the minister, underlining that at the moment no formal request for an audit of the accounts has arrived from the European Union. Therefore "there is no reason to change the government's strategy" based on the need to strengthen growth.
A letter from the European Commission is expected this afternoon, in which all existing doubts about the Italian maneuver should be included. At risk is not only the process of approaching a balanced budget but also the commitment to reduce the debt/GDP ratio in the terms sanctioned by the Fiscal Compact.
