Italy changes tone on public finances

To reassure the markets, leave the accounts in order, to avoid open conflict with Brussels… In just a few days, the change of tone of the Italian government, is spectacular. And we must admit that the fact to hear suddenly the two strong men of the government to ensure in chorus that it is “to respect constraints european” (Matteo Salvini, League), in order “not to destroy Europe” (Luigi Di Maio, Movement 5 stars) there’s something disconcerting, one hundred days after the formation of a government which did not stop, until then, promise to the Italians a direct confrontation with Brussels on fiscal issues.

The international monetary Fund has not failed to acknowledge immediately that turn, Thursday 6 September, pointing out, by way of its spokesman, Gerry Rice, ” the markets were concerned about the possibility, on the part of Italy, turning back the clock on reforms and a relaxation of budgetary discipline, but have been reassured “.

A man has not changed address since the beginning. It is the minister of finance, Giovanni Tria, partisan, assumed the reduction of deficits and of the dialogue with Europe. This university is moderate and rather pro-european, not belonging to any of the two components of the current majority government, the League (far-right) and the Movement 5 stars (antisystème), shall make public, in the next few days, the new version of the document multi-annual budget programming.

In the last iteration of this text, issued at the end of June, the Italian government had asserted that it maintained the forecast of a return to balance by 2020, set by his predecessors. Without turning back to the general goal of deficit reduction, the new version should untie the Italy of this commitment, in order to give a bit of flexibility. Will this be sufficient to offer a bit of air without too much scare…

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