Italy manages to avoid the infringement procedure. After weeks of tug-of-war between the government and the leaders of the European Union, the heads of cabinet of the European commissioners have decided to block the sanctions against our country. And the EU Commission has implemented it, deciding not to recommend the opening of the procedure to Ecofin.
“We had set three conditions: we had to compensate for the gap for 2018, that of 2019 from 0,3 and obtain guarantees on the 2020 budget. The Government has approved a package that meets our three conditions” and therefore “the debt procedure is no longer justified”: said the commissioner for economic affairs Pierre Moscovici, explaining the reasons behind the European about-face.
The reassurances on the accounts provided by the Government on Monday with lbudget adjustment and the decree which "freezes" the minor expenses from basic income and quota 100 therefore worked. Two days ago, the executive approved a correction of the accounts which is worth a total of 7,6 billion euros: 6,1 come from the budget adjustment, 1,5 billion from the decree which blocks the money saved on the 100 share and the income of citizenship.
Thanks to these measures, the commission points out, “it is expected that Italy's headline deficit will reach 2,04% of GDP in 2019 (it was 2,5% in the Commission's previous forecasts), an objective enshrined in the 2019 budget adopted by the Italian Parliament. In structural terms, the correction is even higher (8,2 billion of GDP because we do not consider the one-off revenues from the tax amnesty which disappointed expectations by 0,6 billion) and slightly higher, equal to 8,2 billion "which leads to a improvement of the structural balance of about 0,2% of GDP (compared to a deterioration of 0,2% in the Commission 2019 spring forecast)."
"Thanks to all the measures adopted by the government - Moscovici reiterated - Italy would overall comply with the rules of the Pact in 2019 on structural effort". For next year instead, "The Government made a commitment on Monday evening" to respect the Pact by doing a “significant structural adjustment in 2020”, with a letter “signed by Conte and Tria, even if the details will arrive in October with the next draft budget law”.
However, Matteo Salvini's promises hover over Moscovici's words, who continues to push on the flat tax, a very expensive measure, according to many incompatible with compliance with EU rules and above all with the 26 billion already needed to stabilize the new safeguard clauses. The "no" to the infringement procedure by the EU? “I was sure of it, good. Now I will propose to the government to speed up the maneuver for next year": the deputy prime minister tells reporters in Transatlantico Matteo Salvini who on the inclusion of the Flat tax in the maneuver replies: "without a doubt".
“I wanted to congratulate Prime Minister Giuseppe Conte for the work done at the European tables. An infringement procedure was avoided that could have fallen on the country, due to the Pd. Italy didn't deserve it and today's announcement does justice to Italy and this government”, commented the deputy premier Louis DiMaio.
