The improvised Gualtieri is already spending the money from the Recovery Fund loans. All in current expenses
Is Gualtieri already pledging the future loans (attention, loans, non-repayable fund) in current expenses, and hypothetical, Recovery Fund, all in defiance of the logic of economics and prudence?
We recall that the Recovery Fund, the theoretical 750 billion fund of which 360 non-repayable, paid by European taxes, and 390 in loans, will begin to arrive from the end of 2021, if it is approved by national parliaments, a fact certainly not given the maretta on the "rule of law" which we will see separately. Spain, Portugal and France have already stated that they do not intend to use them. So what is Gualtieri doing?
Gustavo Piga, taken up by others, points out that, probably, he is already engaging them. Let's read:
"In the Nadef it emerges that the Recovery Fund loans, not the non-repayable ones but the others at very low rates, will not be used for what we would expect, and that the country would need, that is, investments," says Piga. “Instead, they will serve to finance the expenses already foreseen which, in the absence of European aid, would have been covered by internal public debt. There is a substitution effect, as they say in a technical way, that is, European money is used instead of that of the Italian budget; but so the effect for the economy is zero. Except the small savings for lower interest «.
So Gualtieri is budgeting the money that:
- it is not absolutely sure that there is a recovery fund;
- a non-renewable loan is used not for investments, but for current expenses.
Congratulations to the "Austero" Gualtieri who behaves, more or less, with a Maduro perspective in which a debt practically in currency is used for current expenses. At this point it is better that there is no recovery, at least we emit some btp ani.
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The article The improvised Gualtieri is already spending the money from the Recovery Fund loans. All in current expenses comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/limprovvido-gualtieri-sta-gia-spendendo-i-soldi-dei-prestiti-del-recovery-fund-il-tutto-il-spese-correnti/ on Mon, 09 Nov 2020 10:05:02 +0000.