In the spring package of the European semester, theEU has certified that theItaly is proceeding as expected as regards the reorganization of public finances. Our country is in line with the recommendations of the European Union which should report the relationship between deficit and GDP below the threshold of 3% established by the Treaties.
A result that unites our country to most of those to which the EU has recommended a reduction in the deficit, such as France and Poland. In some cases, however, such as those of Romania and Austria The debt situation is worsening.
The EU promotes Italy on deficits
The communication of the European Union on the deficit is clear: “As regards the Member States subjected to excessive disavowing procedure (EDP), the European Commission believes that for France, Italy, Hungary, Malta, Poland and Slovakia It is not necessary to adopt further measures in the Edp at this stage “.
Italy therefore promoted, with also a note of merit for a more prudent attitude than necessary on the increase in expenses. According to the internal estimates of the European Commission, which are based on projections and are therefore subject to variations, in 2025 the state should spend it 0.2% of GDP In addition to 2024, well below 0.5-0.6% recommended.
The new rules of the stability and growth pact have been negotiated in 2023, after the suspension of restrictions during the pandemic from COVID-19. Italy has undertaken a path of reducing public spending and debt, which should lead it by 2030 to respect the main EU parameters.
What Italy did to reduce the deficit
The European Commission is the second promotion in a few days for Italian policies in terms of public finance after that of the International Monetary Fund. Also in that case a virtuous path of reduction of the deficitwhich in 2024 halved.
Much of these results are due to the work of the Minister of Economy Giancarlo Giorgetti, who pushed to limit public spending on the minimum essential even at the cost of injuring his government allies and his own party, the League.
In the last financial law, the executive has renounced many of the electoral promises in order to keep the accounts in order. The cutting of the tax wedge was only confirmed, and not significantly expanded. The pension reform It has been excluded and various flexibility measures that attenuated the parameters of the Fornero law have been eliminated or very reduced.
The Bocciati of the EU
Not all European countries have respected the parameters imposed by the European Union. Austria The most recovery was absolutely, with the opening of an excessive deficit infringement procedure. The expenses of the country in the last year have exceeded 4.7% of GDP, well beyond the limit imposed by the treaties of 3%.
Bad also lin Romaniawhich has increased net spending well above the parameters recommended by Brussels to reach the sustainability of public accounts by 2030. New corrective path instead for Belgium, whose net expenditure has however remained within the limits of flexibility expected.
