Spending cuts of 10 billion, targeted incentives and concessions - Il Sole 24 Ore

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This article was published on April 4, 2015 at 08:11.
The last change is the April 4, 2015 at 10:04.

Cuts in current spending to $ 10 billion in 2016, but not only. To defuse the “safeguard clauses” already budgeted in the form of increases in VAT and excise duties, the government aims to recover all around 16-17 billion D, leveraging other addenda. It focuses on the flexibility of the European game connected to the path of reforms, but also on the lower interest expenditure propitiated by falling interest rates and the spread, if necessary by a margin greater than the deficit target of 1.8% planned for next year, compared with 2.6% expected this year. If fully implemented the ‘flexibility clause on reforms’ could translate into a room to maneuver than 7-8 billion. The balanced budget, now set to 2017, would be delayed accordingly to 2018.

In the Document of economics and finance and in the National Reform Program that – did you know yesterday Palazzo Chigi – will be approved next Friday, you outlines the scenario for each programmatic reform fielded.

In the drafts available currently lacks the impact of any reform on potential GDP, which will obviously be the subject of the latest filings. Look far from irrelevant, considering that the activation of the flexibility clause is subject to certain conditions: the reforms should have positive long-term budgetary, “including the strengthening of growth potential,” and be “completely implemented. ” The time schedule attached to the PNR fixed the matter respectively in July and in December the deadline for approval of electoral reform and constitutional reforms. The implementation of the jobs act is monitored with particular attention to Brussels, so that the PNR is fixed between April and June, the period of time for the launch of the remaining decrees legislativi.Sul the expenditure side, in policy documents in the approval process is explicitly refers to both the review of tax (the “tax expenditures”) that the reorganization of business incentives. The first operation is called crucial to “improve the rationality, transparency and simplicity” of the tax system. In implementation of the delegation – reads the draft of the NRP – will be issued a decision within the session of the annual budget. In the cuts program also includes the chapter (previously postponed) concerning the reduction of local subsidiaries.

The path of debt reduction, in the direction of 124.6% (target should be achieved in 2018) will be helped – confirms the government – the contribution of the privatization of 0.7% of GDP per year (about 11 billion) in the period from 2015 to 2018.

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