Finance minister Pier Carlo Padoan stressed the importance of giving structural intervention the proper time to bear fruits. «It is no a way to escape our duties»
by Emanuele Bonini
The European Union should reconsider the approach at the base of the European Semester, the cycle of economic and fiscal policy coordination within the EU. Reforms should be evaluated in the medium term instead of the current year-by-year attitude, the Italian Finance minister, Pier Carlo Padoan, said today. «One year is not enough to see if reforms are on track», he said intervening at the "Reinventing convergence" conference, held in Brussels by the European Commission. «We need a multi-year period to assess whether reforms are bearing fruits or not». The concept expressed is not new to Padoan. Indeed, it is not the fist time the Italian minister insists on longer-lasting framework as key elements of reforms, and once again he reiterated what has been stating since he took office, in the previous legislature. «Reforms need time to be passed and implemented, need time to be perceived by the people as the good idea, need time to produce effects». That doesn't want to be a smart move to avoid responsibilities. Padoan assured partners Italy will remain committed to what the EU rules foresee. A multi-year approach in the national reform programme assessment «has not be seen as a way to escape from obligations».
Padoan recalled how much Italy has done in these last years. «The beginning of the story» of the country, as he said, was a situation made by «three challenges», namely the stability of the public finance with the related debt reduction issue, the need of enhancing the growth potential, and the reform of the banking sector. Italy had all these three problems, three aspects that «severly interact» and that turn in «a worse example of vicious circle» especially in situation of harsh crisis such as the one Europe experienced since 2008. «Since then we turned a page, starting a virtuos circle», the Italian minister stressed in his intervention. He recalled all the reformes already passed by the Parliament, the one of the labour market (Jobs act), the one for the civil just, «one of the main obstacles for business», and the several measures tabled for the banking sector. Here the italian minister wanted to point out that the bank restructuring process «is still underway, is not over, but is in the right direction».
A lot has been done and a lot will be done, according to the Italian Finance minister. Structural reforme are by definition never-ending, he recalled. It is up to national governments to implement put them forward, and the natural reshuffles of democracy haven't to be seen as a problem. «Every Member State has a structural reform agenda, and structural agendas never end. Political mandate finishes, work does not». The current government, as well as the one before, paved the way for the structural adjustement Italy needs. Keep working along this track is the political heritage the next government will receive.But time will be required to have the overall picture, and Italy has been asking for changing perspective in name of recovery. «Another crucial element is confidence for companies», Padoan recalled. «Companies need long-time horizon to invest», and the Italian government wants the investments back to the country.
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| Pier Carlo Padoan |
The European Union should reconsider the approach at the base of the European Semester, the cycle of economic and fiscal policy coordination within the EU. Reforms should be evaluated in the medium term instead of the current year-by-year attitude, the Italian Finance minister, Pier Carlo Padoan, said today. «One year is not enough to see if reforms are on track», he said intervening at the "Reinventing convergence" conference, held in Brussels by the European Commission. «We need a multi-year period to assess whether reforms are bearing fruits or not». The concept expressed is not new to Padoan. Indeed, it is not the fist time the Italian minister insists on longer-lasting framework as key elements of reforms, and once again he reiterated what has been stating since he took office, in the previous legislature. «Reforms need time to be passed and implemented, need time to be perceived by the people as the good idea, need time to produce effects». That doesn't want to be a smart move to avoid responsibilities. Padoan assured partners Italy will remain committed to what the EU rules foresee. A multi-year approach in the national reform programme assessment «has not be seen as a way to escape from obligations».
Padoan recalled how much Italy has done in these last years. «The beginning of the story» of the country, as he said, was a situation made by «three challenges», namely the stability of the public finance with the related debt reduction issue, the need of enhancing the growth potential, and the reform of the banking sector. Italy had all these three problems, three aspects that «severly interact» and that turn in «a worse example of vicious circle» especially in situation of harsh crisis such as the one Europe experienced since 2008. «Since then we turned a page, starting a virtuos circle», the Italian minister stressed in his intervention. He recalled all the reformes already passed by the Parliament, the one of the labour market (Jobs act), the one for the civil just, «one of the main obstacles for business», and the several measures tabled for the banking sector. Here the italian minister wanted to point out that the bank restructuring process «is still underway, is not over, but is in the right direction».
A lot has been done and a lot will be done, according to the Italian Finance minister. Structural reforme are by definition never-ending, he recalled. It is up to national governments to implement put them forward, and the natural reshuffles of democracy haven't to be seen as a problem. «Every Member State has a structural reform agenda, and structural agendas never end. Political mandate finishes, work does not». The current government, as well as the one before, paved the way for the structural adjustement Italy needs. Keep working along this track is the political heritage the next government will receive.But time will be required to have the overall picture, and Italy has been asking for changing perspective in name of recovery. «Another crucial element is confidence for companies», Padoan recalled. «Companies need long-time horizon to invest», and the Italian government wants the investments back to the country.
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