BAGNAI vs GENTILONI IN PARLIAMENTARY COMMISSION. The defendant did not answer a question …

We present an extract from the Hearing of the ̶s̶o̶t̶t̶o̶s̶e̶g̶r̶e̶t̶a̶r̶i̶o̶ ̶d̶i̶ ̶D̶o̶m̶b̶r̶o̶v̶s̶k̶i̶s̶ European Budget Commissioner Gentiloni in front of the V Budget Commission chaired by… Marattin (who temporarily takes back the mask… by Marattin). Bagnai asks five specific questions:

• There are estimates of the macro impact of the recovery fund. Commentators speak of an impact of 1% of GDP compared to a decline at European level of 8%;
• "Now we have the resources," said Gentiloni, which are then loans. The Commission has assessed the impact on the markets of national bonds of eust issues, because today also Il Sole 24 Ore spoke of a possible penalization of the rates of national markets;
• There are studies on the pricing of Italian seniority securities, ie privilege, equal to that of European securities, and on the basis of which norm the seniority of European securities is higher than that of national securities;
• If a state does not return the funds, who pays? Who plugs the hole;
• The SURE was requested by 17 countries, but not by France and Germany. The ESM was only requested by Cyprus, which is very different from ours?

Gentiloni talks about “very numerous” questions… there are five.

Answers:

• The impact should be 1.8% in 2021-22 and 2.2 in 2014 .. (no, in 2024… Gentiloni's gaffe). Gentiloni, his goodness, affirms that the impact on the most indebted countries should be greater … But the resources are "Strategic" because it is "Common debt for common objectives". Which is nice, but it might not even interest you;
• The Commission will have favorable conditions… and should become a “A highly sought-after safe asset”, but, by saying so, it confirms the fact that the state debts will be hit, even if Gentiloni hopes that this effect will not be;
• the issue of Seniority is abstract and, according to Gentiloni, it is questionable whether the debt of the Commission is Senior. For Gentiloni there is no possibility of restructuring national debts. The same was said of bank bonds. However, the seniority base of Recovery is to be understood;
• why does the SURE work and the MES doesn't? Because those who have used the MES no longer want it !!!!! the report on use remains (and in reality, as the Court of Auditors clarified, also on the ability to repay loans and on the consistency of behavior towards the Commission's indications, but Gentiloni has forgotten it) …

the answers are not complete: the effect on debt rates, which is very general, and what happens if someone doesn't pay. The macroeconomic study is also unclear, given that, for example, a specific effect for Italy has not been calculated, but an average, very low effect, with the hope that someone should be affected more. By dint of auspices, however, we die …

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The article BAGNAI vs GENTILONI IN PARLIAMENTARY COMMISSION. To question the accused did not answer … it comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/bagnai-vs-gentiloni-in-commissione-parlamentare-a-domanda-limputato-non-rispose/ on Tue, 01 Sep 2020 16:03:43 +0000.