Barroso's letter: blackmailing Italy

Lettera Ue a Padoan, Barroso si vergogna

JYRKI
K T INEN
VICE-PRESIDENT
OF
THE
EUROPEAN COMMISSION RUE DE
LA LOI,
200
B-1
049
BRUSSELS
TEL.
(+32-2)
295 55 99
Brussels, 22 October 2014 Ares(2014)
5
Ļ0t

STRICTLY CONFIDENTIAL

Dear
Minister,
First
and
foremost, would like
to
thank
you
for the
submission
of
Italy s Draft Budgetary
Plan
(DBP)
for
2015, which we received
on
15 October and complementary
tables
on
16 October.
am
also
grateful for
the
letter accompanying
the
DBP and which clearly makes the case that
the
budgetary
strategy
of Italy
is to
be considered within
the
overall agenda for structural reform. Compared
to
the
2014 Stability Programme, Italy s DBP postpones
the
achievement
of
the MTO
to
2017
and
slows down
the
reduction
of the
debt-to-GDP ratio
in
the
coming years. As
a
result, the
DBP plans
to
breach
Italy s requirements under
the
preventive arm
of
the Stability and Growth
Pact
(SGP). According
to
our preliminary
analysis
n
the
basis of the recalculation
by
the Commission services
using
the commonly agreed methodology
taly
plans a
significant deviation from the required adjustment
path
towards
its medium-term budgetary objective
(MTO)
in
2015
based
on the
planned
change
in
the
structural balance. Moreover,
the
planned change
in
the
structural balance for 2015 would also
fall short of the
change required
to
ensure
adherence
to the
transition
debt
rule,
since
this requirement
is
even
more stringent than
the
required adjustment
path
towards the
MTO.
Against
this
background,
further
exchanges of information have already taken place between your services
and
the
Commission.
In line
with the provisions
of
Article
7(2) of
Regulation
(EU)
473/2013 of
21 May
2013,
am
writing
to consult
you
on
the
reasons why Italy plans non-compliance
with
the
SGP
n
2015. would
also
wish
to
know how Italy could ensure full compliance
with
its budgetary policy obligations
under
the
SGP for
2015.
The
Commission seeks
to
continue
a
constructive dialogue with Italy with
the
view to come
to
a
final assessment. I would
therefore
welcome your view
at
your earliest convenience and
if
possible
by
24
October. This
would
allow
the Commission
to
take into account Italy s views
in
the
further
procedure. Yours sincerely,
Mr
Pier Carlo Padoan Minister of Economy and Finance Via
XX
Settembre
97
IT-00187 Roma e-mail: Segreteria.ministro@tesoro.it