Def, Giorgetti: “We will evaluate adjustments for budgetary critical issues”

Def, Giorgetti: “We will evaluate adjustments for budgetary critical issues”

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«The economic and financial document will soon be presented to Parliament. According to the instructions of the Commission it will probably have a slightly different shape than in the past, certainly lighter». The Minister of Economy Giancarlo Giorgetti said this during the hearing of the joint budget commissions of the House and Senate on the reform of EU economic governance.

«Since the suspension of the Stability and Growth Pact introduced following the pandemic and extended due to the energy crisis ended at the end of 2023, based on the net debt recorded by Italy last year (7.2% of GDP according to the first ISTAT estimates) it is obvious that the European Commission will recommend to the Council to open a procedure for excessive deficit against ours and several other countries”, added the minister, who then underlined the positive aspect of the EU investigation. «I believe that the fact-finding investigation could also be an opportunity to evaluate, as also suggested by Parliament, the need for possible and further adjustments useful to overcome the critical issues of the internal accounting structure, not directly connected to the process of reform of European rules, which the experience of recent years has brought to light”. The level of Italian public debt, he then added, “for obvious reasons of sustainability, requires the maximum weighting of the resources to be allocated to individual public policies and, now, the undeniable need to measure and monitor the actual benefits of each individual expenditure” .

«If on the one hand it now appears necessary to replace some widely used institutions, such as tax credits, with types of intervention that can actually be controlled, such as contributions – he said at the hearing – the administrations will have to structure systems capable of providing timely monitoring of spending and tools for verifying the effectiveness of financed public policies. Only in this way will it be possible to guarantee full compliance with the net expenditure path envisaged by the fiscal-structural plan and avoid ex post correction interventions”.

The minister then specified that «it will be important to improve the content and timeliness of the technical reports, which administrations too often draw up with stylistic clauses. The scrupulous compilation – he added -, also by bringing together the best existing practices, could be functional for a more careful planning of spending by the administrations”.

Deadlines and forecasts
Just a week after the April 4 deadline, Giorgetti must present the Economic and Financial Document, that is, give Brussels and the markets an updated picture of the public finances and explain how he intends to finance the budget law for 2025. The latest estimate of the European Commission says that we will not grow more than 0.7 percent. The minister is tempted to bet on a round +1 percent, which no one believes today. With these numbers, it is unlikely to be able to confirm last autumn’s deficit estimate of 4.3 percent. THE accounts will start with a shortfall of at least ten billion compared to forecasts. Just for the confirmation of the decontribution and Irpef cut of the last Budget, another 15 billion are needed. To this scenario we must add the entry into force of the new Stability Pact, which makes it impossible to replicate deficit levels such as those accumulated since the pandemic.

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