Brussels, 05/04/2013 (Agence Europe) - In a telephone conversation on Wednesday 3 April, Euro Commissioner Olli Rehn asked Italy to urgently pay its outstanding bills to Italian companies, but said this was not a miracle solution for dealing with the country's economic and competitiveness problems.
Rome has delayed introduction of a new law that would pay some €40 billion of outstanding bills, half of which later this year 2013. The total amount owed is estimated by Banca d'Italia at €90 billion.
Impact on public finance. On Thursday, a European Commission spokesperson said that it was possible for the Italian state to pay its outstanding invoices without jeopardising the country's exit from the excessive deficit proceedings, this exit being an important step to ensure sustainability of Italian public finances, although paying off the arrears would have more of an impact on public deficit than the “limited” impact on the public deficit.
The Italian government says the 2013 deficit will be 2.9% of GDP, under the 3% cut-off point, but paying off the arrears would increase it by 0.5% of GDP. Unveiling its Winter Economic Forecasts, the Commission said Italy was one of the countries likely to exit the excessive deficit procedure in the near future (see EUROPE 10792). (MB/transl.fl)