Surprise decree coming from the prolonged Monti government. Today the Council of Ministers - initially scheduled for 10 but then postponed to 19 - will give the go-ahead to the provision for the release of the first payments: it is about 40 billion of the total 91 owed by the public administration. Refunds will be due business first, favoring older invoices, then to the banks.
It is anticipated a relaxation of the stability pact internal to allow Municipalities and Regions to immediately spend up to a maximum of 5 billion already in hand. Furthermore, it will be established a Fund with a budget of three billion for 2013 and five for 2014 in favor of administrations with insufficient resources to pay off debts. The loans must be repaid in deferred installments up to a maximum of 30 years.
However, bitter news emerged from the drafts circulated yesterday for taxpayers: the Regions that use these advances could be allowed to carry out as early as 2013 the increase in the additional personal income tax rate – which should have started in 2014 – up to a maximum of 0,6%, thus raising the ceiling from the current 1,73 to 2,33%. Yesterday evening, however, Treasury Minister Vittorio Grilli assured that the rule will be canceled by the decree.
The first half of payments will come this year, the second in 2014. In all, it is about 19 billion from the municipalities, 14 from the local health authorities and 7 from the central state. The beneficiaries will be approx 215 thousand companies, which according to Unimpresa have an average credit of 422 thousand euros.
Of the 20 billion expected for 2013, a significant portion will be destined for investments: around seven billion not yet accounted for, which will be financed increasing the 2013 deficit-GDP ratio to 2,9%, against the 2,4% initially expected. The new figure is in any case lower than the Maastricht parameters (3%) and should allow the closure of the European procedure against our country for excessive deficit. On the other hand, yesterday the European Union made it known that Italy will not be granted no extension to return to the limits. “2,9% is an insurmountable threshold”, underlined Grilli.
As for the financial coverage of the entire package, the Government aims to find the resources to ensure the necessary liquidity through government bond issues up to a maximum of 25 billion for each of the years 2013 and 2014. There is also a clause for the ministries, called upon to cover the higher interest rates on the public debt with new linear cuts.
