Italy faces "formidable challenges" and results are needed on budgetary consolidation and the relaunch of growth without losing sight of equity.
This is the "recipe" of the vice president of the European commission and head of economic affairs, Olli Rehn, after hearing from the EU finance and policy commissions of the Chamber and the Senate. And there was also a joke about the new executive: "'I hope that the Monti government has the support of Don Camillo and Peppone".
Italy
Obviously, in Rehn's hearing Europe and the euro are the reference coordinates, but there are also specifc notes on Italy. It is "urgent and necessary to produce results without delay" in tackling the crisis in the euro area, is the premise. In general, the mere consolidation of public finances "is not enough for the recovery of the economic situations of the countries: structural reforms are also needed to strengthen growth". And this also applies to Italy”. Rehn insists: “Vulnerable countries, including Italy, are strengthening their budgets. The only solution is to reduce the debt, but also implement structural reforms for growth. Italy faces formidable challenges which - he remarked - largely derive from well-known long-term, ancient weaknesses. With your support – he then said, addressing deputies and senators - – the new government must produce results on budgetary consolidation and adopt ambitious measures to relaunch growth while guaranteeing social equity” .
However, Rehn acknowledges that in general in the "recent months Italy has made some progress", recalling the "letter of commitments to the EU". But the commissioner then focused on the problem of high youth unemployment. In countries like Spain and Italy “it is at worrying levels. It is an excessive waste ”,- he said, explaining that-“ if I were a young Italian or a young Spaniard I would ask myself why unemployment is so high in Italy compared to Austria or Holland ”.
And he announces that on the initiatives that our government intends to put in place "we will present a first report on Italy to the Eurogroup next Tuesday". – Eurobonds, tobin tax- "There is strong opposition to Eurobonds and a certain skepticism: strong efforts will be needed before public opinion in Germany or in other countries can be convinced of the advantages of Eurobonds", notes Rehn. And he adds: " Europe must work day and night for a convincing crisis response. I believe that the instrument of stability bonds alone is not capable of countering the crisis. We need a comprehensive intervention."
The issuance of Eurobonds, according to Rehn, "should go hand in hand with much strengthened fiscal surveillance". Conversely, the EU Commission “is in favor of the taxation of financial transactions. And at least the 27 countries of the Union should approve it, or at least the countries of the Eurozone should take steps forward, says Rehn speaking of the so-called Tobin tax. -EU- Rehn acknowledges that “Italy is one of the countries most committed to the community method. The EU must be built on the basis of the community method and we cannot rely exclusively on directors from two or three countries. This is why the community method must be adopted in the construction of economic union”.
