Europe warns Meloni: Cut bill subsidies immediately and cut public spending

Reduce the “energy support measures in place” by the end of 2023 and then eliminate them completely by 2024. And use the resources saved to reduce public spending that could lead to the opening if not adjusted downward according to current government estimates. excessive open procedure. This is what emerged from the package of recommendations that the European Commission sent to Italy in the context of the so-called European period, namely the procedure for Brussels to monitor the implementation of the Stability Pact in member states.

overly open

The Pact, which was suspended due to the pandemic and frozen due to the Ukrainian occupation, will come into force again next year. It is not yet known whether and how the reform will take place (debates are ongoing and the changes proposed by the Commission do not convince Italy), but meanwhile, Brussels is sure to return to turning on its lights. worried country. The problem with the problems, of course, remains public debt. However, according to Brussels, there are also delays in the implementation of Pnrr (not only in projects but also in related reforms) that could complicate Italy’s economic situation.

This is the reason for the invitation to do more with EU funds (including cohesion funds) and use the deficit when it comes to public spending. The first recommendation is to “ensure a prudent fiscal policy, in particular by limiting the nominal increase in nationally funded net primary expenditures to no more than 1.3% in 2024”. But the reduction in public spending should also concern the current year: Brussels recalls that, “based on the final data for 2023, it may start procedures for “excessive deficits” in the spring of “next year.”

To tighten the belt on this perspective, Giorgia Meloni’s government should immediately reduce subsidies on energy bills to companies, to zero by 2024, and use the associated savings to “reduce the public deficit,” as he advised Member States. Brussels adds that if new increases in energy prices make it necessary to maintain support measures, they must be ensured that they are “aimed at protecting vulnerable, financially sustainable households and businesses and maintaining incentives to save energy.”

Pnrr delays

The Commission then opens the Pnrr section: “Ensuring effective governance and strengthening administrative capacity, particularly at the sub-national level, to allow sustained, rapid and sustained implementation of the recovery plan”, the recommendations read. Also, perhaps considering rumors about a possible request for the Meloni government to review the plan (by reducing the amount of funding allocated by the EU), Brussels invited Rome to “protect nationally funded public investments and ensure effective absorption of Rrf subsidies”. is doing. (Pnrr funds, ed) and other EU funds (first and foremost, cohesion funds, ed), specifically to promote green and digital transitions”.

Less labor tax

On taxation, the Commission’s recommendations follow what has already been demanded in the past: “Further reduce taxes on labor and make the tax system more efficient by adopting and duly implementing legislation enabling tax reform, maintaining the progressiveness of the tax system and improving the tax system.” fairness, in particular by streamlining and reducing tax exemptions, including VAT and environmentally harmful subsidies, and reducing the complexity of tax law”. The innovation does not want the lowering of labor costs compared to the past to be shifted to the taxation of housing, but proposes to the government “to align cadastral values ​​with current market values” Basically, Brussels wants a cadastral revision that will allow property owners to pay the right price.

Doubts about the “Mattei Plan” for gas

Brussels also appears to be concerned about Italy’s energy plans: progress in renewables in 2022 has been slow, while the share of gas-related consumption has increased. Hence the recommendation to “reduce reliance on fossil fuels” and “facilitate authorization procedures to enhance electricity interconnections to accelerate the generation of additional renewable energy and absorb it”. There are also doubts about the so-called “Mattei Plan”, that is, the Italian strategy aimed at increasing gas supplies from Africa: it is correct to think about energy security, but the “internal gas carrying capacity” from the South to the North The country’s capacity is not enough and therefore needs to be increased. However, always with a focus on spending: “Investments in infrastructure for fossil fuels should be limited to what is absolutely necessary – the Commission writes – and should be designed to be future-proof so that you don’t get stuck with technologies that are not consistent with current climate targets or increase the cost of the energy transition. “.

“Green” houses and super bonuses

Then there’s the “greenhouses” section, complete with a warning about the super bonus. While Brussels waits to know what will happen to a proposal for an EU directive to improve the efficiency of buildings, which Italy and Germany object to because it is seen as an ax in the pockets of businesses and households, it still invites the government to “increase energy efficiency”. In the residential and business sectors (the latter almost ignored so far by super bonus), including more targeted incentive programs specifically targeting the most vulnerable households and the worst performing buildings, including “commercial and public housing”. measures can be “integrated” with such incentives and go “to the particular advantage of small, medium and micro enterprises, which often lack the technical and financial capacity to improve their energy efficiency. The same measures will also “help reduce energy poverty”.

Finally, the Commission recommends “promoting sustainable mobility, including eliminating environmentally harmful subsidies and accelerating the deployment of charging stations”, and “accelerating policy efforts aimed at providing and acquiring the skills necessary for a green transition”.

Source: Today IT

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