Yesterday evening, the Council left the Council of Ministers Nadef, the update note to the document on economics and finance which dictates the line of the budget law for the year 2020. 30 billion foreseen in a maneuver that will ask Europe to increase the deficit by 1,4 percent to recover 14 billion euros to which it will be necessary to add the approximately 7 billions billions deriving from the fight against tax evasion. The program also includes 23 measures linked to the maneuver: among these the Green New Deal, the reform of the Land Registry and the differentiated autonomy.
The increase in VAT will be avoided and the tax burden will be reduced and the wedge on labor will be reduced.
The Minister of Economy Gualtieri he says he is confident of the EU green light. And in the introduction to the document he underlines that the strategy will be long-term, and will develop with a proactive participation in the European project, after a complex phase in which the recurring doubts about joining the single currency by some politicians have helped to reduce investor confidence. This newfound confidence, according to Nadef, is worth almost 6 billion less in interest spending next year. The reference is to the value of the spread which never before stood at around 130 basis points.
The deficit set at 2,2 per cent as a 2020 target is calculated according to current legislation thanks to the VAT increases and the reduction in expenditure per share 100, citizenship income and interest. A nominal deficit of 2,2%, writes Il Sole 24Ore, the result of recent weeks' negotiations with the EU commission.
Important cuts in spending and tax rebates are worth around 3,5 billion, divided in half between the spending review and the tax expenditures.
As for growth after a 2019 that stops at 0,1%, next year we aim for 0,6% to reach 1% in 2021 (the same pace expected for 2022).
Over the multi-year horizon indicated by Gualtieri, the public debt should also close 2019 with another increase of almost one point of GDP, which brings the deficit to 135,7%. A first turnaround is expected next year, at 135,2%, but the decline aims to become more rapid in the following two years, bringing the ratio to 131,4% at the end of 2022.