Today you will hear about the night Council of Ministers only for Renzian ministers who abstained because the use of the ESM was not approved. A nonsense for a government that has not been able to use up to now even the money allocated in the spring to build Covid-19 departments or plan a development pine for the NHS, but which is only a tool of political attack. But you won't hear the bitter truths.
On Monday, with the sole abstention of the Lega and Fitto (FdI / ECR), the ECON Commission approved the regulation of the RRF. This is not a good document for Italy because, in addition to the rigidity on the finalization of the funds, it contains (Article 9) heavy references and constraints to the so-called "European Semester", that is the Via Crucis of limits, constraints, bureaucratic ties that deprives government and parliament from the definition of the budget itself, leaving it to be defined "Automatically" by Maastricht rules, "Two Pack", "Six Pack" etc. A wrong mechanism, now suspended, which caused the 2011-13 recession first and then the non-growth of the following years.
But what the Government forgets to tell us:
- the Recovery (RFF) is a NON-RENEWABLE DEBT to be repaid BY 2056. So either we pay with our taxes or we will have to do it by issuing our debt. All to repay a loan .. that we made;
- taking up the data of the excellentLiturri , even using these funds we would have a negative contribution balance towards the EU of over 12 billion. We will continue to be net contributors. Without Recovery Fund or we would be for 47 (in 7 years). In the end the REAL funds; not the joke, they are reduced to 30 billion in 7 years, just over 4 billion a year. A ridiculous figure, which will lead to nothing. There is talk of a relaunch, with this money the only thing we will launch will be the political class that wanted it;
- the figures share from the government, as much as 309 billion, a mix of the funds of the RRF, some advances on pre-existing funds and the 80 billion deriving from the ordinary EU budget.
So the government behaves like certain companies that raise the turnover, but forget to indicate the costs. The net effect of the RFF will be minimal and reduced by the poor overall return on investments. A flop for which we will pay the consequences, for which we try to remember those responsible.
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quello-che-non-vi-dicono-e-vi-diranno-sul-recovery-approvato-dl-cdm-sentirere-solo-parlare-di-renzi/ on Wed, 13 Jan 2021 07:09:10 +0000.