Monday , March 20 2023

Spiegel: The Italian tragedy – The commission is over


Monday ends the Commission's mandate in Italy to submit a new draft budget to Brussels.

But the Italian government is not willing to compromise, Spiegel Online writes in an article titled "The Italian Tragedy." The German site mentions that "if no solution is found, Italy can impose a fine of € 3.5 billion. Even if Rome does not reconcile and refuse to pay the fine, then Europe will face a political crisis and financial, before which the dispute with Greece in 2015 will look like a toy.

Italy has only one possibility to resume its feet. It must overcome economic stagnation and, at the same time, ensure the stability of its budgetary positions. The government is wrong to look for tax breaks and reduce the retirement age. On the contrary, introducing a minimum social allowance makes sense in Italy, much less combined with the training programs for the unemployed.

Undoubtedly, the conflict with the Commission, elected by the Italian government, prevents growth. The risk of non-payment or exit from the euro leads to an increase in interest rates. The cost of the loans is not only increased for the Italian state but also for businesses, making investments for growth ever more expensive. In other words, the crisis fills the crisis.

Leo Leo Mateo Salvini, however, is not interested in improving the situation of Italy and its citizens, but rather to win the favor of Italians with his public appearances so that he can win the European elections one year. Consistent action against Brussels therefore brings more political benefits to the leaders of Rome than a long-term recovery program for the Italian economy. "

Italian media: Three seek compromises

However, according to Italian media, Italian Finance Minister Giovanni Tria is seeking a compromise with the European Commission.

According to the same information, Mr Trei can "cut off" Italian estimates – which foresee a 1.5% GDP growth – by half a unit.

Reuters: They're studying a "cutter" solution like in Greece

An Italian official told Reuters that any revision of the 2019 growth calculations will aim to convince the Brussels authorities that the government will not exceed the target of a deficit of 2.4% of GDP.

Reuters added that Mr Three also considered the solution of an automatic cutter like the one adopted to control Greece's spending on a Memorandum. The mechanism automatically reduces public spending if there is a risk of overcoming the target.

However, it is unclear whether the Commission is willing to accept the project Three, given that Rome does not seem willing to limit the budget deficit, which is the main source of concern for Brussels.

The 2.4% deficit that the five Stege and Lega governments want for next year is three times higher than their predecessors promised.

With information from DW, Reuters

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