Italy and Belgium's budget plans
8.12.2017
Question for written answer E-007596-17
to the Commission
Rule 130
Nikolaos Chountis (GUE/NGL)
Pursuant to the rules of economic governance, a country that breaches the debt rule, i.e. a country whose public debt is higher than 60% of its GNP, must adopt specific fiscal measures.
During the European Semester, the Commission sent letters to Italy and Belgium, whose public debt is at 132% and 104% of their GNP respectively, in which it noted that the countries’ fiscal effort for 2018 is insufficient, according to the debt rule.
In particular, it estimates that, in cyclically adjusted terms, Belgium presents a surplus of 0.3%, instead of 0.6%, while Italy presents a surplus of 0.2% instead of 0.6%.
Italy’s reply is of particular interest, as it underlines that its economy is still suffering the consequences of deflation, unemployment and a significant output gap, and that the management of the refugee crisis requires additional expenses.
The Commission is asked:
- —What steps will it take next?
- —What measures are provided in the regulations on economic and monetary union in the event that Italy and Belgium persist with these budgets?
- —Do Member States still have the fundamental right to plan and implement budgets that they deem serve their peoples’ interests better?