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May 20, 2020

This year's EU recommendations focus on combating aggressive tax planning, "a clearer priority than in the past". So the Commissioner for Economy Paolo Gentiloni. "Some elements in the tax systems of some EU states are still used by companies to make aggressive planning. There can be no room for similar practices in Europe of solidarity and equity," he said. Holland, Luxembourg, Malta, Ireland and Cyprus among the countries that will have recommendations on the subject.

Everyone does what is necessary for the economy
"There must be a budgetary orientation that supports" the situation "in all Member States, and we recommend taking all necessary measures to support the economy and ensure recovery" he added, recalling that not opening procedures this year "is consistent with the stability pact safeguard clause". "When the situation normalizes, it is vital to avoid the mistake of the past," when "investments were the first victim" of consolidation.

For Alitalia discontinuity necessary for state intervention
On Alitalia "I do not discuss government decisions. I repeat only what is known, that is, that it is connected to the discussion with the Commission on discontinuity which is a necessary condition for this intervention. But I think this will be discussed in the coming weeks between the government and the Commission, "he said of the state intervention in Alitalia.

The suspension of the Stability Pact will last as long as the Covid crisis lasts
The "general suspension clause" of the provisions of the EU Stability Pact for the fiscal policies of the Member States, activated last March due to the Coronavirus crisis, "will be deactivated when the conditions will no longer exist ", that is when the EU as a whole will no longer be in a situation of" serious economic recession ". And conversely, it will remain in force "as long as the situation remains this".

The vice-president of the European Commission for the Economy, Valdis Dombrovskis, and the Commissioner for Economic and Financial Affairs, Paolo Gentiloni, during the online press conference on "country-specific recommendations" ", presented by the Community Executive in the framework of the" European Semester ".

The general escape clause "responds to clear conditions: a serious economic downturn for the EU as a whole. This - said Dombrovskis - is the criterion on the basis of which it can be decided to deactivate it. We cannot indicate a specific date, because at this moment there is a high level of economic uncertainty, but we will monitor the situation, and when the conditions no longer apply the clause will be deactivated ". "Of course - added the Vice-President of the Commission - at that point we will take into account the fact that the starting positions of the Member States will present a much higher level of deficit and debt, when they have to return to committing themselves to the path towards budgetary targets middle term". Furthermore, Dombrovskis explained, "in the Stability Pact and in the budget rules we have a correction mechanism, the so-called 'matrix', which allows us to take into account the efforts of the Member States in relation to the economic cycle, distinguishing between good economic conditions or normal and negative. Therefore, we will evaluate at what stage the Member States will be when the general suspension clause is deactivated; and therefore we will in any case - he concluded - an approach modulated in line with the anti-cyclical provisions in our rules ".

Gentiloni, after pointing out that "the suspension clause is general and does not only concern Italy" (because the question concerned Italy in particular), insisted that "the definition is very clear": the clause " apply in the event of a severe recession affecting the whole of the Union ", as happened with the pandemic crisis." When this situation changes, we will take our decisions; but as long as the circumstances remain these, we will keep the situation unchanged ", concluded the Commissioner.