Economy Minister Giovanni Tria said
Tuesday he was optimistic Italy could avert an EU infringement
procedure for breaking the debt rule, saying that Italy was
respecting the rules.
"WE think that Italy is respecting in a substantive way the
European budget rules and I am optimistic for this reason
regarding the European (infringement) procedure", he said at an
international economic seminar at Villa Mondragone in Monte
Porzio Catone near Rome.
"I don't see obstacles to an accord with the EU," he went on.
"For a zero-growth economy the target of a public deficit of
2.1% for the current year represents a more than prudent budget
policy and we will arrive at this level of deficit thanks to a
prudential management even though we are implementing the social
policies decided in the last budget law," he said, referring to
a basic income and the 'quota 100' early retirement scheme.
Tria went on to say that cutting taxes was part of the
government programme.
"It certainly is part of our programme," he said when asked
if there would be a 'flat tax' as requested by Deputy Premier
Matteo Salvini.
"Parliament has approved this. The VAT hike form the next
year is part of the current State law. We are working to avoid
it."
Tria also said that "for the future the idea is to keep the
deficit low and continue with the objective of lowering the debt
not by raising taxes but via lower current spending: that is our
commitment to towards parliament and we are working to satisfy
this mandate with the next budget law".
The government is working to avert an infringement procedure
by finding several billion euros of cash.
Salvini is insisting on an early budget bill and the dual
rate 'flat tax'.
The European Commission has said a procedure is justified.
The European Commission "is continuing its preparatory work"
on an infringement procedure against Italy for braking the debt
rule, a spokesman for EC chief Jean-Claude Juncker said Tuesday.
This work is proceeding "in line with what is laid down in
the Treaties", he said.
He said this was being done in the wake of the June 5 report
that concluded that a procedure was justified, and after the
backing of financial ministers.
"The college of the EU Commissioners has been updated on the
Italian situation," he said.
"It has had a discussion, and has decided to return to the
issue next week".
The next session of the college is scheduled for next
Tuesday, July 2.
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