“A short time ago this assessment was made by the Commission” on the 2024 budget plans of the member countries, “also on the Italian budget which does not appear to be in line with the recommendations of the EU Council. This also applies to other countries. And we asked Italy to undertake deviations and to bring public finances back into line with our recommendations”. This was said by the Vice President of the European Commission, Valdis Dombrovskis, guest of “Start” on Sky tg24 from Davos.
On the ratification of the ESM reform “discussions continue with Italy. Obviously it is up to the Italian Parliament to decide what the next steps forward” to be taken are, “we hope to be able to see them as soon as possible”, he stated. “I don’t hold the right position to be able to speak about Italy and what Parliament will decide, but I will be in contact” with the government “and we will discuss the next steps together”, he further underlined.
Italy respects one of the fundamental recommendations of the EU Commission for 2024, namely the ceiling on the growth of the aggregate of net primary expenditure. However, the growth of this aggregate is assessed by the Commission as “not fully in line” with the recommendation, substantially due to the Superbonus, notes the PBO in the focus comparison between the budget policies of European countries.
According to the Commission, the most recent estimate of spending for 2023 is higher than the estimates made in July, when the recommendations were made, due to “two factors related to tax credits for the energy renovation of residential buildings”: a use of these credits higher than expected in 2023; and legislative changes that changed their nature, reducing their expected impact on 2024 spending.”
Among the main countries in the euro area, only Spain is overall in line with all EU recommendations. The Commission called on Germany to reduce energy support measures as soon as possible in 2023 and 2024, while Italy “should stand ready to take the necessary measures within the national budgetary process to ensure that the policy budget in 2024 is in line with the Council’s recommendations”. The PBO writes this in a focus on European Dpbs. France, recalls the Parliamentary Budget Office, “has been invited to adopt the necessary measures within the national budget process to ensure that budget policy in 2024 is in line with the recommendations”.
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