The Italians are replying to the “Strictly confidential” letter they received from the EU last week, in which they were questioned about missing their budget targets set by the EU.
- Italy committed to adopting additional measures for 2015
- Will bring structural adjustment to over 0.3 percentage points of GDP in 2015
- Will prepare revised budget plan in next few days
- Confident extra measures will address EU concerns
Italy’s Padoan writes the reply. He also starts quoting EU law as to why they are justified in missing the EU targets.
Moreover, as you pointed out in your letter, Italy’s budgetary strategy is to be considered
within the overall agenda for structural reforms. It is exactly for that reason that the Italian
Government has decided to make use of the flexibility granted by the European (Article 5 of
Regulation 1466/97) and national legislation (Artide 3, Paragraph 4 ofLaw No. 243/2012) in order
to implement an ambitious package of structural refmms aimed at enhancing potential growth.
These reforms will have a direct impact on potential growth and debt sustainability, thus allowing,
in accordance with European and national laws and regulations, a temporary deviation from the
convergence path towards the MTO.
You can read it in full here Lettera Padoan
