Friday , March 5 2021

Italy continues to budget abroad

On Tuesday evening, Deputy Prime Minister Slavini said after a cabinet meeting that he did not want to change anything vital. At midnight, the deadline would expire when the state had to give the European Commission an answer. Three weeks ago, the committee referred the Italian plans to the trash and asked the government to do its homework again.

Now the European Commission is ready again. Officially, there are two weeks to return to Italy, but it is likely that on Wednesday there will be an answer, says sources.

First, the finance ministers are arriving in Brussels on Monday for another Eurogroup meeting. Officially, it is not about Italy but about reforming the euro area, where decisions must be taken in December. The subject of Italy will surely pass.

The commission can suggest that Italy should end up in the European Criminal Court and that a fine of up to 0.2 percent of GDP, or about 3.5 billion euros, can be imposed, something that has never happened before. a decision.

Italy wants to invest tens of billions of euros next year more than allowed by the rules. The Netherlands, for example, strongly opposes the fact that it could jeopardize the stability of the entire eurozone.

The budget deficit wants Rome to grow to 2.4%, and in accordance with agreements with previous Italian governments next year may be 0.8%. According to the Commission, the economic growth of 1.5 percent evaluated by the Italians themselves is too optimistic.

The Italian government, which includes the far-left extreme leftist movement and the extreme right, wants to reduce the retirement age and to bring basic income to the unemployed.

Italy's national debt, after Greece, is the highest in the euro area at 131 percent of GDP, and the Brussels standard is 60 percent, because the Italian economy is much larger than Greek, and the impact of the crisis will be much greater.

In response to the plans, the interest the Italians have to pay for their government bonds relative to Germany has risen sharply in recent weeks.

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