From the EU stop to the stability pact but Italy has the accounts not in line

“The activation of the general safeguard clause also in 2023 will ensure the space for the national fiscal policy to react promptly when necessary, while ensuring a smooth transition from the broad support to the economy implemented” during the times of the pandemic towards a growing attention to temporary and targeted measures and fiscal prudence necessary to ensure medium-term sustainability, “writes Brussels. The European Commission will provide guidance on the possible reform of the entire economic governance framework after the summer recess and in time for 2023.

“Italy has excessive macroeconomic imbalances” –

According to the Commission document, Italy is experiencing excessive macroeconomic imbalances, which are not expected to ease in the short term. As stated in the report, “Italy remains characterized by a high ratio of public debt to GDP, low productivity growth and structural weakness of the labor and financial markets”. As stated in the document, the labor market has recovered much of the losses suffered by the pandemic crisis, albeit largely due to an increase in temporary employment. The banking sector has made significant progress in reducing past bad debts, although risks related to the potential delayed impact of the pandemic and geopolitical tensions remain. According to the Commission’s estimates, the reforms and investments of the recovery and resilience plan are expected to mitigate macroeconomic imbalances, provided they are fully implemented.

Dombrovskis: “Countries return to prudent fiscal policies” –

“Countries should return to prudent fiscal policies”. This was stated by the vice president of the EU Commission Valdis Dombrovskis in the presentation to the press of the spring package. “We also reiterate in today’s guidelines that the general safeguard clause does not suspend the budgetary rules of the European Union and does not suspend the stability and growth pact, therefore it will be necessary to continue providing budgetary guidelines for member states”.

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Gentiloni: “The EU does not want to slaughter anyone in taxes”

“The Commission has no intention of slaughtering anyone in taxes.” This was stated by the EU Commissioner for Economy Paolo Gentiloni. Regarding the land registry reform, in the recommendations it is written “‘update the cadastral values ​​to the current market values. And I don’t think it represents a request to increase taxes but a necessity for Italy of which the government is perfectly aware”, he adds. Gentiloni.