Giorgetti, “the EU deficit procedure is a given. Evaluate adjustments to the accounting structure”

Giorgetti, “the EU deficit procedure is a given.  Evaluate adjustments to the accounting structure”


“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 a given that the European Commission will recommend to the Council to open an excessive deficit procedure towards ours and several other countries”.

Thus the Minister of Economy Giancarlo Giorgetti at the hearing of the joint budget commissions of the House and Senate on the reform of EU economic governance.

The reference is to the appointment that will take place in June, after the European elections, when the Brussels executive will present its recommendations on the state of health of the national public finances as well as the list of countries destined to be the subject of a deficit procedure excessive because their deficit in 2023 exceeded 3% of GDP. An exercise that will involve at least a dozen countries, they announced in Brussels at the end of last year, including Italy and France. The new budget ruleswith final approval to be taken home to European offices before the polls, they should probably start next year.

The new European governance will provide for the definition of multi-year plans by the states (in September this year, then fully operational in April) and therefore Italy is moving towards writing of the latest Economic and Financial Document which, said Giorgetti, “will shortly be presented to Parliament. Based on the Commission’s instructions it will probably have a slightly different shape than in the past, certainly lighter”.

The need to also review the national budget definition procedures is upon us, in light of the new Pact. “I believe that the fact-finding investigation could also be an opportunity to evaluate, as also suggested by Parliament, the need for possible further adjustments useful for overcoming the critical issues of the internal accounting structure, not directly connected to the reform process of the European rules, which the experience of recent years has brought to light”, remarked Giorgetti. “I hope that here we can establish a fruitful dialogue aimed at updating the regulatory framework, taking into account the reflections of the various institutions and data from the practices of recent years”.

In the background, the reminder of the high level of public debt Italian which “for obvious reasons of sustainability, requires 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”.


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