A package of measures from 4,5 billion of euros for reduce the deficit-GDP ratio by 0,3% in 2015, as agreed by Prime Minister Matto Renzi last Friday in Brussels. This was announced by the Minister of the Treasury, Pier Carlo Padoan, in the response letter sent this morning to EU Vice-President Jyrki Katainen, which last week he had forwarded to Rome a request for clarificationi on the "significant deviations" contained in the draft of the Stability law with respect to the path set to achieve the medium-term objectives.
There are three sources from which the Treasury will draw to recover the additional resources to be allocated to deficit reduction:
1) from the tax reduction fund will come 3,3 billion;
2) from EU co-financing funds 0,5 billion;
3) by an extension of the other VAT reverse charge regime 0,73 billion.
For next year, the Executive had initially forecast a correction of the deficit-GDP ratio of 0,1%, against the 0,5-0,7% on which the outgoing European Commission led by José Manuel Barroso was aiming.
“Italy's GDP fell by more than 9% compared to the 2008 level – Padoan writes -. The economy is now in its third year of recession and faces a serious risk of stagnation and deflation. A fourth year of recession must be avoided in every way”.
The European Commission has expressed its appreciation for the response received from Italy to the letter with a request for clarification on the Stability Law, which had been sent by the head of economic affairs Jyrki Katainen. "Consultations with Italy and other countries are continuing and the outcome of the process remains open," said Katainen spokesman Simon O'Connor.
The Commission is required to give an accelerated opinion on the budget plans on Wednesday 29 October "only if we find serious non-compliance" with respect to the provisions of the Stability and Growth Pact. "If it should not be the case - concluded the spokesman - our opinion will arrive in November".
Attachments: Padoan's letter.pdf
