Verklaring EU-commissaris Almunia over ontwikkeling Italiaanse begroting (en)

Commissioner Almunia i takes note that the Italian government sticks to the commitment to ensure that the deficit moves clearly below 3% of GDP in 2007, from 4.4% in 2006. Overall, this marks a significant improvement in the structural balance over the last two years, taking place in a context of more dynamic growth reflecting also measures adopted.

However, Commissioner Almunia expresses deep concern about the limited consolidation planned for 2008 and the subsequent years, which is not in compliance with the 20 th of April Eurogroup Orientations. This will slow down the reduction in the public debt level, still significantly above 100% of GDP. Interest payments on this debt, at over € 68 billion in 2006, absorb nearly 5 percentage points of the Italian GDP, an amount twice as high as public investment, constraining resources which otherwise could be used more productively. A slow pace of debt reduction is also very bad for future generations, who will face an increasingly pressure on budgets coming from the ageing of population.

Finally, Commissioner Almunia takes note of the uncertainty persisting as concerns changes to the pension system. He underlines the principle that any change to the current legislation should be budgetary neutral over the medium to long term and should not worsen the long-term sustainability of public finances.

The previous are preliminary comments, given that Commissioner Almunia will receive the document from the Italian authorities only next week.