Italy is willing to settle the dispute with the European Commission over its public debt through dialogue and to find a no-sanctions solution, proving that the current government's measures are economically efficient and justifiable, Simone Bossi, the vice-president of the commission of the Italian Senate on the EU policies, told Sputnik
GENOA (Pakistan Point News / Sputnik - 10th June, 2019) Italy is willing to settle the dispute with the European Commission over its public debt through dialogue and to find a no-sanctions solution, proving that the current government's measures are economically efficient and justifiable, Simone Bossi, the vice-president of the commission of the Italian Senate on the EU policies, told Sputnik.Last week, the European Commission concluded that Italy had breached the EU fiscal rules because of its growing public debt, justifying the launch of a disciplinary procedure, which may result in penalties. The conclusion came after Italian Deputy Prime Minister Matteo Salvini called the EU fiscal rules obsolete and insisted on the need to cut taxes in Italy in order to further increase budget deficit.
"Let me emphasize that our goal is to reach a no-sanctions solution [with the European Union]: we are only at the beginning of a long process, and our government will act to convince the Commission that our economic choices are good, that they have solid foundations and will be practically useful to achieve the economic growth that the Italian citizens are asking for, as was proven by the results of the last round of elections," Bossi said.
According to Bossi, the previous government was guided by "the motto 'What Europe asks us'" and pursued austerity policies, avoiding tax reduction and making sure that the budget was well-balanced.
"And yet, as it was confirmed by the data, public debt continued to increase, and so did the unemployment and all the macroeconomic indices of the country ... We must change policies to seek a real revival not only of our country, but also of the entire continent. So we are open and eager to talk about economics, growth, labor, but we remain strongly opposed to those who continue to advocate an idea of an old Europe that is contrary to the interests of citizens," Bossi continued.
If EU finance ministers back the European Commission's assessment at a meeting in early July, the Commission will need to propose financial sanctions until the end of the month. If the violation is confirmed as a serious breach of the EU rules, Italy might be required to pay a fine of some 3.5 billion Euros (0.2 percent of the country's GDP).
"The outgoing Commission is clearly an expression of political forces that are against the current majority in Italy, that is why criticism of the political and economic choices of the Italian government has been quite expectable. We will respond to the criticism through dialogue, based on common sense, and we are sure that we can reach a compromise. The important thing is to clarify that the compromise that we are going to achieve will always be protecting the interests of Italian citizens," Bossi said.
According to the EU fiscal rules, member states must reduce their public debt every year keeping it below the ceiling of 60 percent of the GDP. Italian public debt is the second-largest in Europe after Greece. It rose in 2018, now exceeding 132 percent.
