Council of Ministers

Budget structure plan, Mef: 'Deficit below 3 per cent already in 2026'. Leo: 'Ok to single collection text'. Portolano new Chief of Defence Staff

For the final numbers, the Ministry of the Economy is waiting for the general revision of the estimates for the last five years that Istat will release on 23 September

by Redazione Roma

Il ministro dell’Economia Giancarlo Giorgetti

5' min read

5' min read

The run-up to the budget law has officially begun. The medium-term structural budget plan, the document envisaged by the reform of the European budgetary rules, has gone to the Council of Ministers for examination.

"The Council of Ministers has examined the outline of the Medium-Term Budget Structure Plan, introduced as part of the reform of European budget rules," a note from the Ministry of the Economy explains. "The document," the document goes on to say, "will be forwarded to the Houses of Parliament after incorporating the statistical revisions made by Istat as part of the 'General revision of the annual estimates of the National Accounts for the 1995-2023 period', which will be released on 23 September next."

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"Over the time horizon considered by the Plan, the growth rate of net expenditure will average close to 1.5 per cent. Moreover, the trajectory is consistent with the trend of the main public finance balances already envisaged in last April's Stability Programme'.

Again: the government continues to pursue 'a prudent and responsible fiscal policy, proposing a realistically more ambitious path to recover from the excessive deficit than the one foreshadowed by the European Commission through the technical trajectory, committing itself to fall below the 3% deficit/GDP ratio threshold already in 2026'.

"After 2026," the Ministry of the Economy added, "the proposed path will make it possible to guarantee the stability of Italy's public debt and allow public finance to face future challenges more effectively. The meeting at Palazzo Chigi ended at around 12.30 p.m.

Mef: in the Psb reforms for 7-year adjustment plan

In the note, the Ministry of Finance further explains that the structural budget plan, examined by the Council of Ministers, also defines the strategic lines relative to the reforms and investments that the government plans to implement over the reference horizon, in particular those functional to the extension of the adjustment period from 4 to 7 years. The Plan, the note specifies, includes reforms and investments that continue the path undertaken with the NRP and update it to act more incisively on challenges such as the PA, justice, improving the business environment, and tax compliance.

Leo, ok to single collection text, forward simplification

"After the single texts on tax justice, minor state taxes, and tax penalties, which are currently being examined by Parliament, today the Council of Ministers approved at first reading the single text on payments and collection," he said. This was announced by Economy and Finance Deputy Minister Maurizio Leo. "This is the fourth single text approved by the Meloni government, demonstrating our constant commitment to simplify and rationalise the current rules on tax matters," he adds. "With respect to the path of single texts, with the approval of today's measure, we can say that we are halfway through. A total of eight are planned,' Leo adds. "We are moving forward along the path of implementing the tax reform, for the construction of a fairer and more modern tax system."

General Portolano new Chief of Defence Staff

The Council of Ministers, at the proposal of Defence Minister Guido Crosetto, has approved the appointment of General Luciano Antonio Portolano as the new Chief of Defence Staff. As of 4 October, Portolano will take over from Admiral Giuseppe Cavo Dragone, who has been appointed chairman of the NATO Military Committee as of next January and who will also assume the position of Advisor to the Minister of Defence for relations with NATO. "I would like to express my warmest congratulations to General Luciano Antonio Portolano for his appointment as the new Chief of Defence Staff," was the comment of Italian Prime Minister Giorgia Meloni. "I am certain that his extraordinary professional and human qualities, combined with his experience and expertise, will enable him to fulfil in the best possible way such a delicate and complex assignment.

In addition, the Council of Ministers, at the proposal of the Minister of the Interior, appointed General Giovanni Caravelli, currently Director of the Aise, Prefect of the Republic. The proposal, according to information, was unanimously approved by all ministers.

Cdm applauds Fitto's appointment and solidarity with Salvini

A round of applause for the appointment of Raffaele Fitto as Executive Vice-President and Commissioner for Cohesion and Reforms, and a welcome for the new Minister of Culture Alessandro Giuli, 'in continuity with the work of Gennaro Sangiuliano'. This is how the Council of Ministers opened, according to what has been learnt, which then listened, among other things, to Economy Minister Giancarlo Giorgetti's illustration of the medium-term budget structural plan envisaged by the new European Stability Pact rules. The ministers on the voice of Francesco Lollobrigida, it is reported, also expressed 'solidarity' with deputy prime minister Matteo Salvini, for whom the Palermo public prosecutor's office has asked for six years in prison in the Open Arms trial.

A section on reform and investment

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Only in the light of the new photograph will the numbers be defined in black and white. Instead, the document could already contain the section dedicated to reforms and investments, the one requested of countries that - like Italy - ask Brussels to extend the return from excessive deficit from 4 to 7 years. Also to start an initial comparison.

Good revenue trend

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While the Mef is studying the new multi-year planning objectives for the net expenditure trajectory, which can be revised only in the event of a new government taking office or exceptional conditions, the Bank of Italy certifies for our country a decreasing debt in July (1.1 billion less, to 2,946.6 billion), even if still close to 3 trillion. Via Nazionale also confirms the good performance of revenues, which in the first seven months of the year increased by 11.9 billion to 309.3 billion: a slight difference with the 328.3 billion calculated by Mef, which takes into account the accrual basis.

Plans to Brussels by 20 October

In Brussels, the plans were expected by 20 September, but many of the 27 countries are behind schedule. The plans are in any case expected before 15 October, without overlapping with the deadline for the budgetary planning document. The budget law is expected in Parliament by 20 October.

The battle over the Omnibus Decree

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In the meantime, the games are being played on the omnibus decree, with over 700 amendments on the table of the Senate Budget and Finance committees. Forza Italia has dusted off the tax breaks for footballers, who have run out of money since this year: the Azzurri are calling for the extension to 2027 of the 50% tax deduction for workers who transfer their residence to Italy and for sportsmen's contracts. The three majority parties are also pressing to move forward by three months, to 1 January 2025, the start of the points-based driving licence on construction sites. The current legislation makes it compulsory from 1 October and the trade unions are on the warpath, but the Ministry of Labour is working to ensure that the new safety tool will enter into force regularly, with the implementing decree expected soon in the Gazzetta. On the other hand, the proposal to further widen the scope of the arrangement with creditors, on which the government is aiming to scrape together resources for the manoeuvre, raises the shields of the oppositions, who promise a battle in Parliament to stop it: 'an amnesty within an amnesty that cries out for vengeance', says the PD; a 'scandalous' amnesty, says the M5s; 'yet another gift to the clever', says the Avs

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