Italy 'probably will exit excessive deficit procedure', but even then it will be necessary to "continue on the path of fiscal consolidation". This was stated by the Vice-President of the European Commission, Olli Rehn, after the release this morning of the new EU estimates on our country's public finances.
“We have received confirmation from the new Government of the will to achieve the budgetary objectives – continued Rehn -. I am in contact with Economy Minister Fabrizio Saccomanni. We have discussed concrete measures”, but the Commission expects more details “in the update of the stability programme”, which will be presented before the end of the month.
“We all know that Italy's public debt level is very high – Rehn said again – and for this reason it is important that it maintains solid finances”. According to the vice president of the Commission, “Italy has reduced its deficit and for this year it is expected to be below 3 percent of GDP, provided that the commitment to pursuing sound finances continues. The structural consolidation of the accounts carried out between 2011 and 2013 brought Italy close to the balanced budgetary target, an important result given the high debt. We will take into consideration the measures that the Government intends to adopt”, but “it is essential” for Italy to “reverse the loss of competitiveness” suffered in recent years.
Meanwhile, the European Commission has given France two more years to bring its deficit back below 3% of GDP, an operation that should have been completed this year. “Considering the economic situation, it is perhaps reasonable to extend the deadline for France by two years and thus correct the excessive deficit by 2015,” Rehn said during the press conference presenting the EU spring economic forecasts.
as to Spain, Brussels has taken into account the "aftermath of the crisis which continues to weigh heavily" on the country's economy and believes that "the extension of the two-year deadline" for the reduction of the deficit below 3% "continues to imply consolidation efforts realistic”. The Commission forecasts a deficit for Spain of 6,5% for 2013 and 7% for 2014, with a GDP of -1,5% and 0,9% respectively.
