The construction site of the maneuver begins, meeting on the EU issues. Giorgetti: “There will be a wedge”

John

By John

At the “Partita del cuore” “the defense was not filtering through and therefore… we need to increase the funds for the defense..”, he jokes Giancarlo Giorgetti taking on the role of doorman for a moment with journalists in Parliament. The issue of defense funds, however, is serious and the Minister of Economy in Parliament sets some limits on the day in which the government and the majority they are, in fact, giving the go-ahead to the first technical meetings, not on the contents but on the procedures, for the maneuver. For Italy to increase military spending towards 2% of GDP, in the spirit of commitment with NATO partners, it is a “necessary condition” that defense, which has become a high European priority, be included among the relevant factors that allow derogations from the Stability Pact.

But not at the expense of cutting the contribution wedge, a “priority” that “will absolutely be confirmed”. Without denying the “fair expectation of early retirement”, only within the framework of the “overall sustainability” of the accounts will it be possible to think about the interventions when, at the end of the year, measures dear to the League expire for about 600 million between Ape Sociale, Quota 103, Opzione Donna and the increase in minimum pensions. Before even filling the budget law with content, however, the new Structural Budget Plan must be defined that Italy – barring any delays – must present to the EU by 20 September. And the procedural knots on the timing and content of the national accounting laws must be resolved in light of the new European governance. This is the subject of the meeting, which effectively opened the work on the maneuver, between the Minister for Relations with Parliament Luca Ciriani, the Undersecretary of the Ministry of Economy and Finance Federico Freni, Daria Perrotta, head of the legislative office of the ministry, the presidents of the Budget commissions of the Chamber and Senate, and representatives of the majority. An “exclusively technical meeting on timing and procedures” – Ciriani clarified – and without “any political implications” since “there was absolutely no discussion of the themes and contents of the next budget”.

In Brussels, Italy is continuing the technical negotiation on the ‘reference trajectory’ for the budget correction indicated in the European ‘guidelines’ that Giorgetti received in June, with 0.6% of GDP of annual adjustment. In Rome, by July, the final text of the fact-finding inquiry on the impact of the new Stability Pact on the ‘national budget procedures’ will be ready. After the summer break, at the beginning of September, work on the Plan will begin: it will be approved by the Council of Ministers and ‘certainly’ will have to be voted on by Parliament, as Giorgetti confirmed. A clarification, that on the vote, which is revealing of the uncertainties on the changes introduced by the reform of European economic governance and their procedural impact on public accounting laws, including the methods for parliamentary examination, timing and content. However, everything is facilitated by the introduction of a ‘transitional period’ given the very recent introduction of the new pact.