21-NOV-2014 Ufficio Stampa FINANCIAL TIMES da pag. 4

Fiscal rules says Brussels nrlsread depth ofrecession Economy minister puts ation and Development, of which he has been chief economist. The Paris-based pressure on commission body has estimated Italy's output gap to before budget verdict to be 5.1 per cent this year, with a new and possibly higher projection due next JAMES POLITI - week. Mr Padoan added that if the latter Italy has accused the EU of using numberwere applied, Italy "would be in "shaky" methodology to evaluate coun­ structural surplus now and ... for a tries' fiscal policies, raising the stakes long time". He added: "We would be in a ahead of next week's first verdict on the different world, [with] no requests for budgets of member states by additional resources. We would have to the new . do nothing. It would change a lot!' In an interview with the Financial The commission defended its meth­ Times, Pier Carlo Padoan, Italy's econ­ odology, which was agreed by all mem­ omy minister, said the EU's measure of ber states at the height of the eurozone output gaps - or the amount by which a crisis and is regularly assessed by country's gross domestic product falls experts from national finance short of its potential - was outdated and ministries. The rules are due to be for­ underestimated the depth of the reces­ mally reviewed next year and Mr sions that followed the financial crisis. Padoan said he believed there was "[The] decisions taken [based] on "broad consensus" among EU members such a shaky analytical apparatus are for making a change. But commission very important," Mr ~ said. "This officials denied there was any appetite has to do with resources affecting the to reopen the issue. lives of citizens, so we cannot fool The EU had originally asked Italy to around with that!' reduce its structural budget deficit by as Italy has sought ahead of this year's much as 0.7 per cent of GDP. The budget budget to persuade Brussels to show as proposed last month by , much flexibility as possible on its fiscal the prime minister, made savings of rules. That would have given Rome only 0.1 per cent of GDP, but Rome extra room to slash taxes and limit avoided an outright rejection by finding spending cuts to counter a bitter eco­ additional measures that cut it by 0.3 nomie climate involving three years of percent. declining GDP. "I expect the commission will under­ The size ofltaly's outputgap is crucial stand and appreciate the overall philos­ because the EU uses it to calculate struc­ ophy of the economie policy followed by tural budget deficits, which take into the [Italian] government, which is account the impact of economie cycles. based on growth-friendly fiscal consoli­ The greater the output gap, the greater dation;' Mr Padoan said. the leeway conceded by the EU on fiscal He offered a gloomy outlook for the matters. European economy. "We need to realise The EU's measure of the Italian out­ that we are running a big risk of slowing put gap is 3.5 per cent of GDP. Mr down again. It's not obvious that Europe ~ noted that this figure was signif­ will come out of this very low growth icantly lower than the equivalent from environment quickly and successfully;' the Organisation for Economie Co-oper- Mr Padoan added.

Intervista a Pier Carlo Padoan - L'Italia afferma che Bruxelles ha male interpretato l'intensità della recessione

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