“Despite the signs of recovery in the current year, also in 2014 the gap between observed and potential growth will remain particularly negative, the economic recovery still fragile and the labor market situation still difficult”, for this reason “the budget in structural terms” of Italy will be postponed from 2015 to 2016, but will then be maintained until 2018. This is the explanation given today by the Minister of Economy, Pier Carlo Padoan, during his speech in the Senate on the Def.
“To facilitate the payment of past debts of the public administration – said the number one of the Treasury – the Government intends to make use of the procedure for exceptional events provided for by article 6 of law 243 of 2012. The legislation provides that, in the presence of exceptions, the Government, if it deems it essential to deviate from the programmatic objectives, having consulted the European Commission, presents a report to Parliament and a specific request for authorization which indicates the extent and duration of the deviation, as well as defining a repayment plan which allow for convergence towards the medium-term objective. The resolution of each Chamber must be voted by an absolute majority of the respective members”.
In light of the situation of the Italian economy, added Padoan, “the Government believes that the macroeconomic and financial conditions require a reconsideration of the approach to the medium-term objective represented by a balanced budget in structural terms. The government has already explained in detail how it intends to deal with the persistence of adverse cyclical conditions through short-term stimulus actions, such as the payment of public administration debts, and with structural reforms”.
However, the minister assured that "in 2015 the structural deficit would begin to decrease again by 0,5 percentage points thanks to a consolidation maneuver financed by a reduction in spending equal to 0,3 percentage points of GDP on the primary surplus".
