The Minister of Economy, Pier Carlo Padoan, sent the European Commission yesterday the "Report on the relevant factors influencing the dynamics of the Italian public debt, in the light of which the results achieved can be considered more than satisfactory". This is what we read in a note published on the Treasury website. The reference is to Italy's response in Brussels after the request for an adjustment of the public finances of 3,4 billion (0,2% of GDP).
"Regarding the alleged gap between the budget balance forecast for 2017 by the Government and the margin deemed necessary by the Commission in order to progressively reduce the public debt - continues the note - with the letter accompanying the Report, the Minister indicates the economic policy initiatives capable of bridging this possible difference.
In defining medium-term economic policy, and therefore in view of the Def, "among other things, the Government will take measures to combat tax evasion in continuity with those already adopted in the recent past, extending their scope, and to reduce spending , also thanks to the new method of constructing the state budget which came into force with the reform completed in 2016”, concludes the Treasury.
At this point, the ever more concrete risk of the opening of an EU infringement procedure hangs over Italy. The letter sent yesterday evening by Padoan, according to Brussels, is too ambiguous on the timing of the measures that the government intends to take. The latest attempt to avoid rejection is entrusted to the forthcoming meeting in Malta between Jean Claude Juncker and Prime Minister Paolo Gentiloni.
Meanwhile, the cost of insuring the 5-year Italian sovereign debt (credit default swap) hit 173 basis points yesterday, the highest since December 5, the day after the constitutional referendum that led to the resignation of Matteo Renzi.
