:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/LRZG3OYWIFBS5PQCK4BUR3L4TI.jpg)
The upcoming budget law will have unchanged policies and is estimated to cost at least 20 billion. To cover the planned interventions, adequate resources must be found, starting with extending the tax wedge cut, which alone is worth almost 11 billion. Although the expected GDP for 2024 is only 0.8%, it is projected to increase to 1.1% in 2025 before slowing down to 0.8% in 2026. The full implementation of the Pnrr could lead to a GDP growth of 3 percentage points, slightly lower than what was initially anticipated by the Mef. However, it is crucial that the planned interventions are carried out promptly.
The Parliamentary Budget Office has released its annual report outlining potential trajectories for public finances in the upcoming years. These trajectories will influence the construction of the next budget law. The EU Commission has opened a deficit inflation procedure for seven states, including Italy and France. Member states have until September 20th to submit medium-term plans to the Commission to reduce debt.
Both internal and external factors influence financial balances, including ongoing conflicts like those in Ukraine and the Middle East, which have led to an inflationary spiral and subsequent growth in interest rates. Additionally, Italy’s weight of public debt is expected to exceed 3 trillion next year.
The Minister of Economy emphasizes fiscal responsibility and sustainable public finance while highlighting that careful planning and collaboration will be essential in navigating the complex economic landscape in the coming years.
The EU Commissioner for Economic Affairs also highlights the need for collaboration in preparing multi-year spending plans and supporting nations like Italy with their financial challenges.
In conclusion, careful planning and collaboration are necessary as both internal and external factors impact financial balances. Ongoing conflicts like those in Ukraine and the Middle East have led to an inflationary spiral and subsequent growth in interest rates.
The EU Commission has opened a deficit inflation procedure for seven states, including Italy and France, while member states have until September 20th to submit medium-term plans to reduce debt.
The Minister of Economy emphasizes fiscal responsibility while highlighting that careful planning will be essential in navigating the complex economic landscape in the coming years.
The EU Commissioner for Economic Affairs also highlights collaboration as necessary for preparing multi-year spending plans while supporting nations like Italy with their financial challenges.
