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Spending review, here is the Cottarelli method

The commissioner for the spending review will have to implement a series of structural changes: intervening on individual expenditure items would be a titanic undertaking and, overall, not very useful - Only the big bureaucrats know where to intervene to reduce waste: their collaboration it is necessary, but difficult to obtain.

Spending review, here is the Cottarelli method

In silence, but for a little while longer, the work of Carlo Cottarelli, the commissioner for the spending review, continues. In less than two months the veil will have to be lifted on the plan to cut public spending which, according to Treasury Minister Fabrizio Saccomanni, aims to save 32 billion euros by 2016. In all, 2% of gross domestic product, i.e. the 0,65% of GDP each year.  

The goal is ambitious and requires Cottarelli to implement a series of structural changes. Intervening on individual expenditure items would be a titanic undertaking: it would involve reaching 32 billion by declassifying one by one thousands of items, including the 1.905 euros spent in 2013 by Palazzo Chigi on "supply of liquids and soaps for dishwashers" or 6.221 euro in "supply of boxes with lids".

Only the bureaucrats in charge of each section of the Italian administrative machine can know for sure where to intervene to reduce waste. Their cooperation is needed, but difficult to obtain. Cottarelli knows this, which is why he made it clear to his working groups in the various ministries that - if in the end he is not satisfied - he reserves the right to reject their conclusions and impose his own.

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