La European Commission with a two-page letter he rejected the DEF. Brussels does not tolerate the increase in the deficit. THE Commissioners Pierre Moscovici and Valdis Dombrovskis, "the revised budget targets point to a significant deviation from the recommended path and this is a source of serious concern ”.
Italy plans a deficit at 2,4% for the 2019 forecasting a "vigorous" growth, as the economy minister Giovanni Tria defines it, until 2020, while the European Commission, on the contrary, estimates a slowdown for the Italian GDP: for 2019 plus 1,1% compared to plus 1,5 expected from Rome. The point is that without significant growth Italy could breach the 3% deficit ceiling, writes Euronews.
With the DEF just presented, the Italian government opens to one maneuver of about 36-40 billion, about twice of the standard; the minimum of the promised welfare measures, including citizenship income, Flat tax for VAT numbers up to 65 thousand euros, revision of the Fornero law and new hires in the police, costs about 22 billion, almost entirely obtained from the increase in deficit.
The rest of the coverage will come, according to the DEF, from a 3,6 billion cut to the ministries, 10 billion in three years will come from privatizations and other revenues are expected from the fiscal squeeze on banks and from the auction of 5G frequencies. Too many unknowns and favorable growth forecasts. The Italian obstacle course has begun. Draghi's Quantitative Easing will end from January and the ax of the rating agencies' downgrade could fall.
Palazzo Chigi
“With regard to the reply letter sent to Minister Tria, sources from Palazzo Chigi point out that there has been no rejection by the EU, also because no formal dialogue has yet been initiated - nor could it be -. The evaluation of the EU Commission, it should be remembered, will take place on the basis of the “draft budgetary plan” document which will be sent by the Italian government by 15 October ”. This is the official reply from the Italian government which adds: “The executive remains strongly convinced of the validity of the measures that will constitute the economic maneuver. Equally strong is the will to start a constructive dialogue with the EU ”.
Tria: "Do not base concerns about public finances" - “Concerns about public finances are unfounded”. This was stated by the Minister of Economy, Giovanni Tria, speaking of the maneuver. “Obviously - he added - the deficit increases with respect to what was previously expected, but I'm not worried. I will explain to Europe why we have made this decision. The commission will make some remarks and we will open a constructive dialogue. I am always optimistic otherwise I would not be here ”, said the minister before the Commission's letter was made public.