{"id":428653,"date":"2025-06-04T14:22:42","date_gmt":"2025-06-04T12:22:42","guid":{"rendered":"https:\/\/www.eunews.it\/2025\/06\/04\/italia-procedura-deficit-in-sospeso\/"},"modified":"2025-06-04T15:27:26","modified_gmt":"2025-06-04T13:27:26","slug":"italys-deficit-procedure-on-hold-dombrovskis-stability-and-reforms","status":"publish","type":"post","link":"https:\/\/www.eunews.it\/en\/2025\/06\/04\/italys-deficit-procedure-on-hold-dombrovskis-stability-and-reforms\/","title":{"rendered":"Italy&#8217;s deficit procedure on hold. Dombrovskis: &#8216;Stability and reforms&#8217;"},"content":{"rendered":"<p>Brussels &#8211; <strong>No measures on public accounts against\u00a0Italy, <\/strong>for now: the country is in the group &#8211; along with Greece, the Netherlands, Slovakia, Sweden, and Hungary &#8211; of those that &#8220;continue\u00a0to present imbalances&#8221; in terms of deficits and &#8220;significant overall vulnerabilities.&#8221; However, &#8220;at this stage,\u00a0<strong>no further measures are necessary under the excessive deficit procedure&#8221;<\/strong> initiated in July last year, according to the European Commission, which pardons the Meloni government while putting it under close observation. To avoid the hard-line and possible fines, it is now necessary to implement a rigorous reform agenda in compliance with the recommendations that the EU executive has drawn up for Italy.<\/p>\n<p><span lang=\"en-EN\">For Italy, the decision is to put the procedure on hold, with the Commission ready to take appropriate action if what needs to be corrected is not corrected. It\u00a0means that the country&#8217;s public accounts must\u00a0be sorted out. &#8220;<strong>The<\/strong><\/span><span class=\"HwtZe\" lang=\"en\"><span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\"><strong> main objective of the <a href=\"https:\/\/commission.europa.eu\/business-economy-euro\/european-semester_en\" target=\"_blank\" rel=\"noopener\">European Semester<\/a> remains fiscal sustainability and macroeconomic stability<\/strong>,&#8221; Economy Commissioner <strong>Valdis Dombrovskis<\/strong>\u00a0said when presenting the contents of the reports drawn up in the context of the economic policy coordination process.\u00a0<\/span><\/span><\/span><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"dFK646pPJG\"><p><a href=\"https:\/\/www.eunews.it\/en\/2024\/06\/19\/italy-in-excessive-deficit-procedure-eu-accounts-give-cause-for-concern\/\">Italy in excessive deficit procedure. EU: &#8220;Accounts give cause for concern&#8221;<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Italy in excessive deficit procedure. EU: &#8220;Accounts give cause for concern&#8221;&#8221; &#8212; Eunews\" src=\"https:\/\/www.eunews.it\/en\/2024\/06\/19\/italy-in-excessive-deficit-procedure-eu-accounts-give-cause-for-concern\/embed\/#?secret=1OYIBFFqbA#?secret=dFK646pPJG\" data-secret=\"dFK646pPJG\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>The reason for not proceeding further against Italy lies in the prospects for correcting the deficit\/GDP ratio. The country <strong>will exceed the 3 percent threshold envisaged by the <a href=\"https:\/\/www.eunews.it\/en\/2024\/04\/29\/new-stability-pact-goes-into-effect-yes-also-from-the-council-italys-green-light\/\" target=\"_blank\" rel=\"noopener\">Stability Pact <\/a><\/strong><span lang=\"en-IT\"><strong>in 2025 (3.3 percent)<\/strong> but will return to the budget rules in 2026 (2.9 percent). However,\u00a0reforms will also be needed because, Dombrovskis emphasizes, a &#8220;<\/span><span class=\"HwtZe\" lang=\"en\"><span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\">common effort for competitiveness is indispensable<\/span><\/span><\/span>.<\/p>\n<h4 id='specific-recommendations-the-usual-ones-remain-valid'  id=\"boomdevs_1\">Specific recommendations, the usual ones remain valid<\/h4>\n<p style=\"margin-bottom: 0px;\">For Italy, competitiveness depends on improving and modernizing its national system. In its country-specific recommendations, the European Commission once again asks Italy for reforms that have so far never been completed and that have been the subject of long-standing calls: updating the cadastral system (which has been\u00a0in place since the 1970s), reforming the justice system (there are too many lawyers and too few judges in the Republic), reforming and making the public administration more efficient, promoting gender equality in the workplace, cutting the tax wedge on labor, and encouraging more and better competition.<\/p>\n<h4 id='taxes-a-knot-to-untie'  id=\"boomdevs_2\">Taxes, a knot to untie<\/h4>\n<p style=\"margin-bottom: 0px;\">On the tax front, Italy is standing still. The European Commission again calls for <strong>decisive action against tax evasion, which &#8220;remains high&#8221;<\/strong> and implies the need to &#8220;combat undeclared work.&#8221; Moreover,\u00a0the collected taxes\u00a0do not serve a purpose beyond\u00a0accounting. It is the case of\u00a0<strong>energy taxes, which in Italy &#8220;are not designed to encourage the transition towards clean technologies.&#8221;<\/strong> In this sense, Brussels calls on Italy to &#8220;accelerate&#8221; the transition, particularly with more electricity from renewable sources.<\/p>\n<p style=\"margin-bottom: 0px;\">\u00a0<span class=\"HwtZe\" lang=\"en\"><span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\">More generally, special regimes and the wide range of tax concessions, including value-added tax, make the <strong>tax system extremely complex and erode the tax base<\/strong>, resulting in significant revenue losses.<\/span><\/span> <span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\">Shifting the current high tax burden on labor to other under-utilized and less growth-damaging sources of revenue would help increase Italy&#8217;s economic potential.<\/span><\/span><\/span><\/p>\n<figure id=\"attachment_420963\" class=\"wp-caption aligncenter\" style=\"width: 2560px;\"><a href=\"https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-scaled.jpg\"><img decoding=\"async\" class=\"wp-image-420963 size-full\" src=\"https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-scaled.jpg\" width=\"2560\" height=\"1706\" srcset=\"https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-scaled.jpg 2560w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-300x200.jpg 300w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-1024x683.jpg 1024w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-768x512.jpg 768w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-1536x1024.jpg 1536w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-2048x1365.jpg 2048w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-750x500.jpg 750w, https:\/\/www.eunews.it\/wp-content\/uploads\/2025\/03\/dombrovskis-250311-1140x760.jpg 1140w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-420963\" class=\"wp-caption-text\">Economy Commissioner Valdis Dombrovskis [Bruxelles, March 11,\u00a02025. photo: European Council]<\/figcaption><\/figure>\n<h4 id='family-policies-are-needed'  id=\"boomdevs_3\">Family policies are needed<\/h4>\n<div class=\"lRu31\" dir=\"ltr\"><span class=\"HwtZe\" lang=\"en\"><span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\">The country also needs a change of course. Italy lacks Italians, and this poses challenges to\u00a0economic survival. &#8220;<span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\"><strong>The migration balance remains positive but no longer compensates for the low birth rate<\/strong>.<\/span><\/span> <span class=\"jCAhz ChMk0b\"><span class=\"ryNqvb\">As a result, the working-age population continues to shrink, limiting potential growth.&#8221;<\/span><\/span><\/span><\/span><\/span><\/div>\n<h4 id='forward-with-the-nrrp-and-cohesion'  id=\"boomdevs_4\" dir=\"ltr\">Forward with the NRRP\u00a0and cohesion<\/h4>\n<p style=\"margin-bottom: 0px;\">Now more than ever, the call on Italy to <strong>accelerate the implementation of the National Recovery Plan<\/strong> (NRP), including the specific chapter of RepowerEu, remains valid, as<br \/>\nItaly is one of the Member States with the oldest populations. However, now the need becomes even more pressing because of a 2026 deadline to use the\u00a0Recovery Fund funds, which is just around the corner. Furthermore, there is a call to fully\u00a0use\u00a0the structural funds made available for cohesion policies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Commission decided not to proceed further but also not to close the dossier opened last year. From cadastre to justice the usual recommendations<\/p>\n","protected":false},"author":494,"featured_media":428625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","subtitle":""},"jnews_primary_category":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[25681],"tags":[31386,25742,27047,28510,27722,25830,28793,25740,25885,25979],"class_list":["post-428653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","tag-country-specific-recommendations","tag-deficit-en-2","tag-eu-en","tag-semester-en","tag-italy-en-2","tag-governo-meloni-en","tag-nrrp","tag-accounts-public-en","tag-riforme-en","tag-valdis-dombrovskis-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/428653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/users\/494"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/comments?post=428653"}],"version-history":[{"count":5,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/428653\/revisions"}],"predecessor-version":[{"id":428674,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/428653\/revisions\/428674"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media\/428625"}],"wp:attachment":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media?parent=428653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/categories?post=428653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/tags?post=428653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}