BUDGET LAW: THE BRUSSELS AUSTERITY RETURNS. Recovery a joke
There is a very powerful ally for Paragone's Italexit or for the more sovereign and Eurosceptic wings of the League and if they turn out to be of FdI: he resides in Brussels and is called the European Commission. The practical test is in the Budget Law which, unknown to the Italian Parliament, is instead placed under observation and already "Contained" by the Commission. Above all, the Recovery Fund does not exist. Let's analyze the main points, as cleverly presented by Liturri . The judgment is expressed on the Budget Planning Document (DPB), the task that the MEF sends to Brussels to obtain an opinion BEFORE Parliament. Here are the essential points:
- The Commission says COVID ONLY has prevented us from an excessive debt procedure. An insane punishment, based on the Maastricht parameters of 1993 (many of you were not even born) and which would have tried to "improve" the deficit by removing 0.6% of GDP in resources. A bit like putting someone who is dying of hunger on a diet;
- the government had put 0.6% of GDP as a contribution from the recovery fund in 2021, the Commission specifies that, with the approval now being postponed to 2021, the maximum there will be a contribution, as an advance, of 7 billion. It was already little, 0.6% of GDP, now it's nothing….
- the "Temporary" 2020 measures, 6.1% of GDP, which are partly carried over to 2021, make the commission stand up. In 2021 these will account for only 1.4% of GDP and it is already an unrealistic forecast will trigger social tensions starting from March, when the layoffs will be released. But the Commission, his goodness, believes that 1.1% of GDP from these reforms are not temporary, but permanent, expenditure. This is 21 billion that or will have to be offset by new revenues. The little economic disaster averted in 2020 is concentrated in 2021, the year in which a gasping economist will be definitively messed with his head underwater and drowned;
- the "Revolving Fund for the Next Generation EU" remains a tragically empty container which, if financed, will be financed only with money from the Italian public debt.
So Brussels, and especially the Dombrovskis-Gentiloni duo, anticipates the return of the Fiscal Compact and the European limits that will not apply until 2022, but which are already, objectively, in force. In the end, the only tiny carrot, paid in any case with our taxes, we will see it with the Recovery, if ever there will be, from 2022, but everything will be subjected to the wishes of Brussels. Meanwhile, the forced cuts will make themselves felt and will increase the unpopularity of a Conte government already in vertical decline in the polls. Whoever joins these rulers, also with a view to the imminent arrival of various vaccines, will be destined to be swept away by a wave of social hostility starting from February. We were very little wrong about the autumn disaster, the spring revolution is even more evident.
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The article BUDGET LAW: THE BRUSSELS AUSTERITY OF BRUSSELS IS BACK. Recovery a joke comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/legge-di-bilancio-torna-la-schiacciate-austerita-di-bruxelles-recovery-una-burletta/ on Fri, 20 Nov 2020 07:35:15 +0000.