Now it's official: by April, Italy must put in place "credible measures" to implement one correction of the 2017 public accounts by 3,4 billion euros, equal to 0,2% of GDP, otherwise the European Commission will activate an infringement procedure for failure to comply with the debt rule. But the eventual measure would probably arrive the following month, because the decision will be taken on the basis of "the spring 2017 forecasts", which are usually published in May. This is what emerges from the awaited Brussels report on the Italian public debt released today.
"As early as today, a procedure for excessive debt should be opened", said the vice president of the Commission, Valdis Dombrovskis, underlining however that Brussels preferred to wait for the approval of the measures promised by the Italian Economy Minister, Pier Carlo Padoan . As for the costs incurred by Italy for "the earthquake and the refugee crisis, have been completely ignored in this assessment,” Dombrovskis reiterated.
I am confident that the Italian government's commitment to take further measures by April will be fulfilled.
- Pierre Moscovici (@pierremoscovici) 22 February 2017
But Europe's judgment of our country is still very severe: “Italy has excessive imbalances“, reads the Communication of the Commission on the progress of structural reforms in the Eurozone approved today, in which, in addition to the debt, the “continued weakness in productivity dynamics” is cited as a negative factor in a “context of high NPLs and unemployment” .
Brussels acknowledges that Italy has launched a series of "positive reforms", but also points out that "the momentum for reforms has slowed since mid-2016”.
Debt/GDP finally stabilised, but it is in the national interest to reduce it with a limited adjustment to the consolidation path
— PCPadoan (@PCPadoan) 22 February 2017
Dombrovskis then tried to dampen the criticisms by explaining that “in Italy the shooting continues” and the problem of bank non-performing loans “is managed, just think of the public guarantees and the Atlante fund”. The European Commissioner for Economic Affairs, Pierre Moscovici, said instead that the Italian recovery is "modest, but should regain speed".
But it is also over in the crosshairs of the Commission Germany, reproached for its excessive trade surplus which “not only creates problems not only for the German economy, but also produces significant distortions for the entire euro area and needs to be rebalanced. We continue to suggest public investment strategies”, writes Brussels.
The effects of the reforms can be seen: growth has returned, employment increases, credit works better. But we must do more https://t.co/4EugoIKXLo
— PCPadoan (@PCPadoan) 22 February 2017
