Tria: Flat rate? Only in a coherent framework of expenses. GDP can slow down

Giovanni Tria, Minister of Economy, plays in the current government the role of man rebalancing, down to earth, caution. Also on this occasion, it is not denied. Indeed, it rebadures the markets on the perspectives of the country, by drawing a prudent and concrete economic line. During the hearing before the House and Senate Budget Committees, the Treasury Chief spoke of the "risks of a moderate downward revision to the 2018 growth forecast," while highlighting that "the first objective priority pursuit of economic growth, within the framework of social cohesion in the framework of a budgetary policy". And this provides for "further reduction of the debt-to-GDP ratio," said Tria. If the concept was not clear enough: "We will continue to move in a direction that will not aggravate the structural equilibrium". And also government flag measures, such as the lump sum tax, must be studied "within a coherent framework of fiscal policy", without tugging, with a "timetable" for its "progressive application".

Patrimonial? No

On the reform of direct taxes, said Tria, the priority objective "is to gradually reduce the burden on low and medium incomes and small businesses." As for the hypothesis of a property: excluded. "This is not in question in the government and I am not personally in favor". While the minister's position against Donald Trump's duties is clear: "There is a strong concern – said Tria – the possible extension of US protectionist measures towards the European auto industry".

Growth

On the country's economic situation, "despite a positive image," said Tria, "recent data suggests that growth has continued for the entire second quarter, but at a more rapid pace. slow "period of 2017 and" the most recent internal estimates indicate a similar growth rate for the second quarter "in the first

No to corrective measures

The Government excludes the need for a corrective budget maneuver in the course of 2018, but has begun a dialogue with the European Commission to redefine the budgetary objectives of the coming years, which imply "a too radical adjustment," said Minister Tria. The new deficit targets, he said, will be consistent with the government's goal of promoting growth and jobs. The minister, confident of the economic trend in the second quarter, fully confirmed the line of caution on budget management. The priorities, he explained, are in fact the further reduction of the relationship between debt and gross domestic product, the "non-aggravation" of the structural balance (that of the EU) and the "no – increase "current part compared to that of investments.

Task Force on Welfare and Lump Sum Tax

Tria also announced the creation of three working groups to address as many specific topics of economic policy. The first on welfare, responsible for making a "due diligence" system to acquire "indispensable information elements" for reform. The second of the commissions, which will involve other ministries, will take care of the tax authorities. The goal is the lump sum tax, but Tria has indicated as a line the gradual reduction of the tax burden on small, medium and small businesses. "The objective of the lump sum tax is not in question," said Tria, "but how to get there.We have to find a timetable for the gradual application of a uniform tax form "which gives priority, in fact, to lower and middle incomes." The last working group will deal with the revival of public investment.

Continuity

"With the past, with my predecessor, there is an obvious continuity, in the sound thinking of those who say that we can not blow up the public accounts, "replied Tria to whom, also in the majority, he did not not notice big differences from the past. "Am I talking like Padoan? Two economists, even if they have different ideas, have common knowledge bases and badyzes. Background that thinks to find the discontinuity in the deficit or in the expense … The discontinuity is not to send the accounts to the antenna. There will be in the use of resources, in the composition of revenues and expenses. "The government, says Tria, has a progressive program of implementation of the various points of the contract" in the context of budget compatibility " And it is not a matter of "postponing" the planned measures, but of studying them and simulating the impact on the economy, which will be the task of the working groups.

The blow and the answer with Padoan

« Markets are not rebadured by postponing the measures of the "Coverage will be done by changing and reshaping the expenses, and by" slipping "a balanced budget, the maneuvers of the next three years, said Tria, will not be so restrictive than those prefigured by the previous government "I'm not a mon ", said Tria, returning to the continuum and concluding with a joke to Pier Carlo Padoan, worried about keeping the accounts:" I think I will have fewer problems defending the public accounts in this government than those who did not have it with yours ". The former Minister of the Economy Renzi Government took the opportunity to respond. "I welcome the statement that the debt will have to decline relative to GDP, but it is necessary to clarify – said Padoan – the debt is declining if there is more growth, but it is It's important to know what the sources of this growth are, and we're asking the government to clarify the numbers and why this is affecting market expectations.In recent months, we've lost several billion dollars for 100 points. This is because the markets are listening to what the majority or the members of the government say. "