GENTILONI CONFIRMS TO GUALTIERI THAT THE RECOVERY FUND IS A TRAP However, the letter becomes public after the elections
Dear friend Gentiloni, on Dombrovskis's orders, writes a kind letter to our finance minister, Roberto “Tappetino” Gualtieri, to update him on the latest news from the Commission.
Let's read
Mr. Roberto GUALTIERI Minister of Economy and Finance Via XX Settembre 97
IT-00187 Rome
Paolo GENTILONI
Member of the European Economic Commission
Brussels, 11. fiI, IIII
PL // as Ares (2020) S- 5606858
Dear Minister,
Since the start of the COVID-19 crisis, we have taken unprecedented measures at both the national and EU levels, acting in solidarity and unity. Three EU safety nets have been established to protect workers and businesses. Member States have taken substantial fiscal measures which have helped to effectively tackle the pandemic, support the economy and support the resulting recovery. Discussions on the multiannual financial framework for 2021-2027 and the new generation of the EU are well underway and we hope that the key instruments will be operational from the beginning of next year.
Our discussions at the Eurogroup and Ecofin on 11 and 12 September reconfirmed a broad consensus on the appropriate fiscal policy orientations for 2021. Following on from these discussions and the Annual Sustainable Growth Strategy 2021, this letter provides further indications for the preparation of the draft budget for 2021.
The budgetary policies of the Member States should continue to support the recovery throughout 2021. In light of this need and the high prevailing uncertainty both about the development of the pandemic and its socio-economic consequences, the general safeguard clause, activated the Commission and the Council in March and does not suspend the Pact procedures, it will remain active 1n 2021 as indicated in the Annual Sustainable Growth Strategy 2021. When economic conditions allow it, it will be time to pursue ftscal policies aimed at achieving prudent fiscal positions. complete.
As there are significant differences in the economic, social and fiscal situation between Member States, support measures should be tailored to the specific situation. They should be well targeted and temporary, and their use and effectiveness should be regularly reviewed. Depending on the development of the pandemic, emergency measures may be needed adjusted and combined with measures that improve the fundamentals of our economies, support the green and digital transition, and positively impact demand.
Fiscal policy planning for 2021 should take into account to the fullest extent possible the implementation of the reforms and investments envisaged under the Recovery and Resilience Mechanism (RRF). Given these interactions, we invite you to provide information on the revenue and expenditure related to the RRF included in your budget plans.
We suggest that we keep our fiscal policy guidelines under regular review. A first opportunity to do this will be by the end of the year, when the Commission will monitor the development of the general government deficit and debt, based on its autumn forecast, and when we will discuss the opinions on the draft budgetary plans of the states. euro area members and euro area recommendations. The Commission will pay particular attention to the quality of the fiscal measures adopted and planned to cushion the impact of the crisis, support recovery and strengthen resilience, while taking into account fiscal sustainability considerations. The assessment will also cover the possible impact of the guarantees provided by the government.
In spring 2021, taking into account the updated macroeconomic projections, we will reassess the situation and take stock of the application of the general safeguard clause.
We hope these clarifications will facilitate the preparation of your budgets and contribute to strong and continued coordination of fiscal policies in 2021.
With best regards,
We translate from the Euro-Bureaucratese:
Dear Italians, go ahead and do all the spending planning you want with the Recovery Fund, but, before spending, you must remember that they are ALL FIGURES THAT YOU WILL SHIP IN DEBIT, and that we, from now to the end of the year, WILL CHECK THAT YOUR DEBT DOES NOT IS EXCESSIVE.
We also remind you that you only have one free exit from the European cage and that everything will be as before, with all budgetary and debt constraints, starting from 2022. Furthermore, if the measures you take for the Recovery Fund and to limit spending, that is, to do austerity at the expense of the citizens, will not be enough, we reserve the right to judge you and, possibly in the spring, not to pay you anything more, so your expenses will remain as your pure debts. In the meantime, however, you will have to pay European taxes (Plastic, carbon tax etc) and maybe even increased contributions to the budget
Ah, finally, as Zanni tells us, the payment of the Recovery Plan for 2021 is only 6% of the total, that is 45 billion for the whole European Union. Basically a tip….
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The article GENTILONI CONFIRMS TO GUALTIERI THAT THE RECOVERY FUND IS A TRAP But the letter becomes public after the elections comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gentiloni-conferma-a-gualtieri-che-il-recovery-fund-e-una-trappola-pero-la-lettera-diventa-pubblica-dopo-le-elezioni/ on Wed, 23 Sep 2020 18:57:19 +0000.