Roberta Lombardi, M5S’s leader in the Lower House, at 8:00 pm yesterday delivered a video report on the day’s happenings in the corridors of power. It involved all sorts of meetings. She also reveals the pigswill law that was thought up at the end of the previous Parliamentary session. The transcript of her report follows.
“Yesterday at 5:00 pm there was a group leaders meeting with three points to be approved quickly either because of legal deadlines or just because they were urgent. Given that the Committees have not yet got off the ground because the parties are still negotiating who will serve on them, a special Committee has to be set up. The most important document is the Government’s report to Parliament about the relaxation of budget constraints and the revision (to make them more negative) of the public finance balances, for a future legal decree that thus makes available more money to add to the public debt so that the Public Authorities can pay out the money they owe to companies.
This amounts to 40 billion euro: 20 billion for 2013 and 20 billion for 2014. There’s a need for a legal decree to relax the Stability Pact as that is urgent. While we are absolutely in favour of paying what is owed to the Small and Medium Enterprises (SMEs), there are two points in Grilli’s account that have not convinced us.
The first: "some of the payments to the companies will immediately flow into the credit system [..] while on one side this reduces the impact on the economic system, it contributes to reducing tensions within the credit system [...] it’s expected that there’ll be a lowering of the interest rate to customers and a reduction in the tensions around the availability of credit. " That is: the citizens, commit to 40 billion euro of public debt, of which a part (nobody knows how much) will go directly to the banks and from this generous, umpteenth gift we are expecting that they will start to loan out money and provide cash for Italian SMEs. The experience of recent years has made us cautious about the effects on the real economy of providing cash to the banks. The other point: "the steps that are planned involve the payment of a percentage of debts relating to investment expenditure of about 0.5 percentage points of GDP, so the planned level of net indebtedness for the year 2013 should be about 2.9% of GDP, and that would keep within the budget restrictions imposed at a European level.". As a figure for net indebtedness, 2.9% of GDP is below the famous 3% for the deficit/GDP ratio. That means that with this legal decree, approved by the Council of Ministers, presented to a special Committee that will then have 3 or 4 days to carry out the preliminary evaluation, then presented to the House for a speedy vote, we will have made use of all the possible indebtedness available to create the basis for growth in 2013 and 2014. This is a decree hurriedly and secretly put together at the end of the previous Parliamentary session in the usual way of doing politics, to produce a pigswill law.
We have expressed our opposition. This issue must be presented to the House and it must follow a normal route. We are asking president Boldrini to set up the permanent Committees and to allow this to be debated in a public session of the Lower House so that everyone can understand what is happening with the citizens’ money.” Roberta Lombardi, M5S leader/spokesperson in the Lower House
Posted by Beppe Grillo at 06:05 PM in Politics
(3) | Comments in Italian (translated)
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