No concession, yet satisfaction for the announcement made, which must be put in practice in a short time. A careful assessment will be made once the Italian Parliament endorses the documents
The Commission “has taken note” of the announcements made in Rome after the approval of the Economic and Financial Document (DEF). At a first sight, the Commission welcomed the contents of the reforms, but it is waiting for the Italian Parliament to endorse them, taking into consideration the promises of ‘amending’ past delays.
Some preliminary observation can be made, explained Simon O’Connor, spokesperson for Economic and Monetary Affairs at the European Parliament. The first thing is that Italy “needs to achieve a balanced budget in structural terms […] in order to put its very high public debt ratio onto a downward path and thus comply with the debt reduction benchmark of the Pact.” That is crucial: the Commission “will assess the revised 2014 fiscal target of 2.6% of GDP and adjustment path towards the Medium-Term Objective in the light of the requirements of the Pact.”
A bit more enthusiasm is expressed in welcoming “the commitment to fully finance the announced tax reductions for low-income workers as of May 2014 mainly through the spending review. Based on the details of the new measures to be specified in legislation, our Spring Forecast will incorporate them as appropriate.”
More broadly, said O’Connor on behalf of the Commissioner of the EU Olli Rehn, “we welcome the announced speeding up of the reform agenda with specific deadlines for each measure, since a determined implementation of the structural reform programme is essential to underpin the nascent recovery and boost potential growth and employment.” Hence, satisfaction for “the intention to proceed rapidly with the announced privatisations, and with plans to rationalise public expenditure through the spending review and to improve the efficiency of the public administration. In this context, the government’s plan to settle all the trade debt arrears and avoid late payments in the future is very positive. Welcome steps have also been announced with regard to civil and administrative justice, business environment, education and research.”
The most interesting passage in O’Connor’s speech, given that the Government plan follows the blueprint indicated by the Commission, hence no doubts it is “welcome”, is the final one, sort of a warning for the latest decisions: “Finally, the stated intention to ensure the effective implementation of measures already taken is also very important given the implementation gaps and delays experienced in the past.” Sort of “do your best to accomplish something, there is no more time to lose.”
Perla Ressese
