The full implementation of
commitments undertaken with the post-Covid National Recovery and
Resilience Plan (NRRP) and a series of reforms, starting with
the fiscal system and the judiciary were key points outlined in
the introduction of the Structural Budget Plan presented by
Economy Minister Giancarlo Giorgetti.
The plan provides for Italy's GDP to remain above 1% until 2026
to then decrease over the next three subsequent years.
Public debt will rise from 134.8% in 2023 to 135.8% this year
and 137.8% of GDP in 2026 and will only start decreasing to
reach 134.9% in 2029 according to forecasts validated by the
Parliamentary Budget Office.
The mid-term 2025-2029 Structural Budget Plan "leaves nobody
behind" and focuses on the "sustainability of the pension system
and the quality of healthcare", Economy Minister Giancarlo
Giorgetti wrote in the introduction of the document which was
delivered to the Lower House and Senate, according to EU
regulations approved by the European Parliament and the Council
in April this year, Palazzo Chigi has said.
The greatest challenge for the country, the introduction said,
is represented by the elevated public debt and by the "relative
burden of interests" which have have restricted the possibility
of promoting policies "to support growth over the last decades",
Giorgetti also wrote.
"The space, although limited, for public investments granted by
the Plan starting in 2027 and a prudent and credible budget
policy are two crucial elements to attack the weight of debt and
expenditure on interests, easing it in a structural manner",
wrote Giorgetti, adding that the "fiscal policy path which the
Plan proposes is realistic, credible and cautious".
The full implementation of commitments taken with the National
Recovery and Resilience Plan (NRRP) and then a series of reforms
that will focus on a number of issues, including
taxation and the judiciary, were key indications outlined in the
introduction of the SBP signed by Giorgetti.
It also listed a reform of the public administration to improve
services, digitalization, competition and the entrepreneurial
world in the new 2024 Competition law.
It also referred to "measures to improve the programming and
control of public spending and to make State, regional and local
spending centres more responsible with the progression of the
so-called 'differentiated autonomy'".
Giorgetti noted that the situation of the economy,
employment and public finances in Italy "is improving despite a
fall in industrial production levels, the concerning
widening of international conflicts and technological and
environmental challenges of growing complexity".
On Friday, Giorgetti said that Italian public accounts are now
under control despite the heavy inheritance of building bonuses
such as the Green home improvement Superbonus which cost
billions of euros for the State.
"The government is working to present the budget law, which will
not deviate from the cornerstones that have inspired the
government's economic budget policy in these two years," he
said.
"Public finances are under control again and after having
inherited the disastrous situation due to the impact of building
bonuses, choices based on responsibility and realism have
brought results and already in 2024, ahead of our forecasts, we
should be able to return to primary surplus, that is, the State
will save more money than it spends net of the cost of public
debt", Giorgetti noted.
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