Italy approves its 2019 Budget and says it keeps the accounts in order

Italy approves its 2019 Budget and says it keeps the accounts in order

The Italian government, conformed by the antisystem Movement 5 Stars (M5S) and the extreme right-wing Liga, today approved its General Budgets for 2019 that contemplate a fiscal amnesty, the reform of the pension system and less funds for immigration.

The draft of this document will now be sent, within the deadline set at this midnight, to the European Commission (EC) to study whether it meets the standards of the Stability and Growth Pact.

The Italian Prime Minister, Giuseppe Conte, held a press conference after the Council of Ministers that with these items "the accounts have been kept in order and the promises made" by the coalition parties during the electoral campaign last March.

For the realization of these accounts, the Executive had foreseen in its macroeconomic table for the next triennium an increase of the deficit of 2.4% of the gross domestic product for 2019, something that provoked the criticism of Brussels.

However, the concrete figures of these Budgets will be known in the coming days, according to the advancement of the M5S leader, Vice President of the Government and Minister of Economic Development, Luigi Di Maio.

For the moment Conte defended today that Italy respects the Stability Pact but added that in this way his Government "is committed to growth and stability", which will be negotiated with the Commission to obtain its approval.

The budgets are accompanied by a decree on taxation that includes an amnesty that has caused divergences between the M5S and the League, since the second party was favorable to this discussed forgiveness was wider, according to the media.

According to these sources, it was finally agreed that those who have evaded a maximum of 100,000 euros could join the amnesty, and Di Maio explained that prison terms will be included for large evaders.

The reform of the pension system is also contemplated, since it still governs the one implemented in 2011 by Minister Elsa Fornero, of the technocratic government of Mario Monti, and which introduced a progressive increase in the retirement age.

The idea of ​​the Government, especially Salvini, is to implement what is known as "Quota 100", which fixes retirement when the years of age and contributions add up to a hundred, and it is expected to begin to legislate in this regard from next February month.

A measure that will lead to the release of "hundreds of thousands of jobs" and generate a generational change, allowing the retirement of workers and access to the labor market of young people, Di Maio predicted.

The vice president of the government and leader of the League, Matteo Salvini, said he was "very satisfied" because, he stressed, "no tax is levied on citizens" and applauded the amnesty that, in his opinion, "starts a pacification process between the Treasury and the Italians. "

He summarized that the Budgets are expected to save more than 500 million euros dedicated to immigration, thanks to the lower arrivals of immigrants, and 100 million euros will go to the Ministry for Family and Disability, a bet of the League.

Di Maio described these plans as the "Budgets of the People" since in his opinion it reduces privileges, in reference to the cut to the so-called "gold pensions", the highest, and will be taxed the games of chance, whose publicity has already been banned

The Economy Minister, Giovanni Tria, said that "the idea that these Budgets want to blow up Europe is completely unfounded" and advanced a meeting in Rome with the European Commissioner for Economic Affairs, Pierre Moscovici.


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