In the spring recommendations, theItaly ended up in the viewfinder EU for budgetary policy.
Prudence, sustainability, inclusion, growth: these are some of the keywords for the future of our country, pronounced by the EU Commission.
Italy still has macroeconomic imbalances to stem, with the debt issue that cannot be neglected. What did the spring recommendations dell’EU?
EU to Italy: attention to spending, budget, imbalances
There have been several spring recommendations that the EU Commission addressed to Italy.
In presenting the European semester, Brussels stressed that our country, and therefore the President of the Council Mario Draghi to whom this phase of relaunch is entrusted, they will have to pay close attention to some issues.
First of all, “Cyprus, Greece and Italy continue to show excessive macroeconomic imbalances”Commission Vice-President Dombrovskis warned.
This means that in our nation the high debt, the low productivity and fragile employment pose serious risks to growth and debt reduction.
A debt that, in reality, in this exceptional time of pandemic, has shot beyond all limits not only in Italy, but also in France, Germany and Spain. Italy, however, remains special with the potential to reach 160% in the debt / GDP ratio.
So what to do to grow? The Commission has warned our country: investments must first and foremost be sustainable, focus on growth and the green and digital transition, encourage structural, tax and health reforms.
And, above all, to ensure budgetary prudence in the medium term. This latter area is under close monitoring.
The European Commission has in fact reminded Italy that it will have to give: “Particular attention to the composition of public finances, both on income and expenses, to ensure sustainability and inclusiveness “
Spend, therefore, but wisely: invest and not use national resources for current spending and ensure prudent budgetary policies.
The debt it will not be the problem of the moment, as Draghi has argued, but it is still a non-negligible aspect.