Eurogroup: Italy must be more effective in reducing the deficit – Il Sole 24 Ore

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This article was published on December 8, 2014 at 10:08.
The last change is the December 8, 2014 at 21:59.

BRUSSELS – The Eurogroup is aligned to the European Commission today to assess the budgets for 2015. Speaking of Italy, the Finance Ministers took note of the various estimates of shortfall between Rome and Brussels, merely noting that “effective measures” may be needed to achieve the fiscal targets for next year. Commission and the Eurogroup will be back to talk about the situation of public finances in March next year.

“We note – reads a statement – which according to the latest analysis of the Commission, the Italian structural effort in 2015 is 0.1% of gross domestic product, compared to 0.5% expected by the Stability Pact. On this basis, effective measures (effective Measures, in English) may be needed to improve the structural effort. ” In the statement, the finance ministers put the emphasis on the commitments of Italy, both in terms of public finance and in terms of economic reforms.
Note that the statement speaks of effective measures, not the additional measures, and does not ask so new and explicit efforts of public finance the government Renzi.

Findings tougher on France
The French case is different. Having noted the difference between structural effort as proposed by Pari s and the provisions of the rules, the declaration states: “On this basis, additional measures (additional Measures, in English) may be needed to improve the structural effort.”
Net use of similar conditional, the Eurogroup was more assertive against France that Italy in assessing the budget estimate and the delay than required by the Stability Pact. The French government has a deficit above 3.0% of GDP since 2009, and is considered by many member countries in serious delay in dealing with the nodes of its economy. Italy instead registers (for now) a deficit below 3.0% of GDP.

“From the indications emerged Eurogroup shows no request for an additional measure by Italy,” he commented here in Brussels on Treasury spokesman, Roberto Basso. The conclusions of the Eurogroup, “confirms the recognition of the effort that Italy is making in terms of structural reforms. It is a stimulus to rapidly adopt the reform agenda. In this perspective, the Commission has a wide range of options in view of the evaluation that will express in March. “

Appointment in March
Many countries are particularly dissatisfied dell ‘ French attitude, and tend to show understanding for the efforts Italian. Asked what would happen in March if Italy fails to improve the structural effort, the Commissioner for Monetary Affairs Pierre Moscovi not talked about automatic procedure against the government Renzi, stressing the need to respect the rules but by defending the idea of ​​a dialogue between Rome and Brussels.
At the same question, Dijsselbloem stated: “There is a gap between what is proposed and what is offered. The difference between 0.1 and 0.5% of GDP is 0.4%. This can be done with new measures or measures more effective among those already taken or with an agreement on things to do. ” In fact, the Eurogroup is aligned to the Commission. The situation will be discussed again in March when Brussels will assess the case Italian (and French) in the light of the budget 2014, the financ ial year 2015 and the efforts to modernize the economy.

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