Brussels, 02/09/2011 (Agence Europe) - On Friday 2 September, the European Commission expressed concern about various measures in the revised austerity measures being passed by Italy and the rejection of the public finance target of returning to a balanced budget by 2013. A spokesperson for EU Economic and Monetary Affairs Commissioner Olli Rehn said that the Commission was not expecting any adjustment in the budget targets, but was concerned that the effectiveness of the measures was highly dependent on tackling tax evasion (as set out in the revised package). The spokesperson said that measures to encourage growth should be pre-eminent, along with the liberalisation of local public services and various professions. A full assessment of the measures will be made once they have been officially passed.
Faced with the danger last month of the eurozone debt crisis spreading to Italy, the Italian government urgently unveiled a new €45 billion austerity package, but has since then revised some of the key measures, like a special tax on high earners. On Thursday, Italian Prime Minister Silvio Berlusconi spoke over the phone with President of the European Commission José Manuel Durão Barroso, assuring him that the commitments would be respected.
The European Central Bank is reported to have demanded the emergency measures in exchange for buying up Italian bonds, and is applying pressure on the government. In an interview in Italian newspaper Il Sole 24 Ore on Friday, ECB President Jean-Claude Trichet said it was crucial that the announced improvements in public finance were fully implemented and the measures announced in August were therefore extremely important with the aim of rapidly reducing public debt and making the economy more flexible. (M.B./transl.fl)