“This is the time when all along we have to push harder than ever because the objective recovery started in Italy thanks to the measures and reforms. In 2015 we turned, in 2016 accelerate. ” Said Prime Minister Matteo Renzi after the approval of the Document of economy and finance (Def) in the Council of Ministers.
The Italian budgetary policy is “strict”, said Economy Minister Pier Carlo Padoan, noting that ” Our primary surplus is positive and growing. We are among the best performers in Europe. “
” They expected a lower figure of our growth, but today many indicators say that Italy is divided and the Def can only photograph the state of the art , higher growth, + 0.9% “for 2015, said Renzi. For 2016 growth is expected instead of 1.6% (the estimates in April predicted growth of 0.7% in 2015 and 1.4% in 2016).
Space flexibility for reform will be 0.5% to which is added space for investments, another 0.5%, but “we will not use it all, but only for one 0.3″, then stated Renzi talking about the maneuver . “The deficit-GDP in 2016 will be 2.2% of GDP due to the flexibility,” he added.
The flexibility “total” obtained in 2016 (including one already granted by the EU and that in the Notes Update Def) is thus equal to 0.8% or about 13 billion euro.
Italy will then ask for flexibility ’0.2 of GDP, others already have done “as margin “related to the fact that the EU as a whole is facing a very large size of emergency, the migrants,” said Padoan, specifying that this would be a space “extra”.
The balanced budget sled still than the estimates of Def. In the Update, approved by the cabinet, the lens is in fact moved from 2017 to 2018.
The debt / GDP ratio will amount in 2015 to 132.8% in 2016 and will fall to 131, 4%, for the first time since 2007. They are declining estimates of the Update to the Def, who reviewed both numbers higher than in April (132.5% in 2015 and 130.9 in 2016).
“The profile of public finance will respect the rule of debt. We are also within the rules regarding the rule of debt, what matters is the path of structural adjustment, “said Economy Minister Pier Carlo Padoan.
” The earliest evidence suggests that the economic and structural policies of the Government are triggering a circuit of confidence that goes by the growth of the product to more and better jobs to come to consumption, “says the premise of Def update. “The fiscal stimulus is sustainable over time because accompanied by structural reforms that modify the root the competitive capacity of the country.”
“There will be less tax even in the law of stability, with the defusing of the safeguard clauses and this will therefore support to domestic demand, “added the Minister of Economy. “Apart from a comprehensive program of structural reforms, support for growth is achieved through a plan to reduce the tax burden on families and businesses,” states the preamble of the Def update note signed by the minister. “It was started in 2014 with the increase in the income of workers at the same cost to business (tax bonus of 80 Euros monthly for employees with lower incomes), continued in 2015 with the reduction in labor costs of enterprises in equality of income for the workers (through cancellation of component work IRAP), strengthened in 2016 with the elimination of taxes on primary residences and some inputs and then in 2017 and 2018 with interventions on corporate taxation and for individuals, “says Padoan.
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