Brussels approves the Maneuver. But there is still work to be done on taxes, cash and tax evasion

The European Commission today communicated its opinion on the Meloni government’s budget law, presented to Europe as a preventive measure and on which Parliament will have to express itself by 31 December, under penalty of provisional exercise. Overall, Brussels says, “Italy’s updated draft budgetary plan is in line with the Council recommendations of July 2022“. The opinion is positive on many aspects which they accompany less favorable judgments regarding the tax system and the world of work. The most critical words are reserved for pensions, the fight against tax evasion and the use of cash.

In particular, in the press release, the Commission praised how, in the Budget, “Italy limits the growth of nationally funded current primary expenditure and plans to finance public investments for the green and digital transition and for energy security“. The latter is considered an essential aspect, also in relation to the context of recent months: “Italy has rapidly implemented the measures in response to the increase in energy prices”, reconstructs the document. “It is important that Italy focuses more and more on such measures to support vulnerable households and businesses, so as to preserve the incentives aimed at reducing energy demand”, with the recommendation of “roll back these measures as energy prices fall“. It must be remembered that 20 billion of the approximately 35 billion envisaged by the Budget will be committed precisely to limiting the immediate effects of high bills, but some subsidies have already been adjusted: this is the case with the discount on fuel excise duties, reduced compared to the previous one intervention by the Draghi government due to a drop in the price of the raw material.

If therefore on the energy crisis Brussels largely approves the work of the Meloni government, on the other front of the economy, that linked to taxation and duties, the Commission is asking for further efforts to be made. “Italy has not yet made progress on the structural part of the fiscal recommendations contained in the Council Recommendations of July 2022,” European officials say. Recommendations I impose on Italy”to adopt and adequately implement the enabling law on tax reformin order to further reduce labor taxes and increase the efficiency of the tax system”.

In addition to this, the European press release continues, harsher judgments are emerging – as announced in recent days – “particularly in the area of ​​pensions and tax evasion and also on the mandatory use of electronic payments and legal thresholds for payments“, which the Budget law sets at 60 euros. For the Commission, the maneuver presented “includes inconsistent measures”, compared to the previous recommendations that Europe had addressed to the executive.

It will now be up to the Eurogroup, the European finance ministers, to discuss the findings raised by the European Commission, before the definitive opinion that will arrive from the Italian Parliament.