the debt costs 25 billion more

There monetary tightening from the ECB weighs heavily on you state accounts. According to a study by An undertakingthe interest that the Treasury will have to pay from 2023 to 2027 to subscribers of government bonds will increase by almost 25 billion euros. A leap that will touch 32% with an outlay inflated from 78 to 103 billion. Spending on interest to service the debt is constantly growing but the increase in this item of the public budget compared to GDP is even more dramatic: from 3.8% in 2023 it will rise to 4.4% in 2027. In the space of just four years the expenditure to remunerate the subscribers of bonds issued by the Treasury will rise by 24.9 billion with an increase of 31.7%. “What we have before our eyes is yet another undesirable effect of the wicked monetary policy dictated by the European Central Bank”, explains the vice-president of Unimpresa Giuseppe Spadafora, «with 10 increases in just 14 months and the base rate raised from zero to 4.5%, bond interests also grew. Too”.

URGENT CUT This is why «the rate cut by the ECB is not only indispensable, but also urgent. Many observers”, adds Spadafora, “indicate the June meeting of the ECB council as the one to initiate a return to a more expansive monetary policy. Thursday the governor of Bank of Italy, Fabio Panetta, said that uncertainty about cuts could cause the start of a new recessionary phase. I hope – concludes Spadafora – that Panetta’s line prevails, but some doubts are legitimate, considering the balance within the board of the European Central Bank. And I also fear that the slowdown on the reduction of the cost of money by the Federal Reserve American can influence for the umpteenth time the decisions taken on the other side of the Atlantic”. According to the Unimpresa study center, which analyzed the data contained in the latest Economic and Financial Document, in 2023 interest expenditure to service the debt stood at 78.6 billion euros. A figure worth 3.8% of the gross domestic product.

CORRECTIVES ABSENT In the absence of corrective measures and falling interest rates, the current year should end at 84.7 billion – an increase of 6.1 billion compared to the previous 12 months. And these scarce 85 billion paid to the holders of Bots And Btp they would weigh 3.9% of GDP. In 2025, another increase of 3.8 billion on an annual basis and impact on GDP rising to 4%. In 2026, the Treasury’s outlay will grow by another 6.8 billion up to 95.5 billion, a figure which will correspond to 4.1% of GDP. And in 2027 the 100 billion wall will be broken, with coupons on government bonds at 103.5 billion, equal to 4.4% of GDP. Overall, between 2023 and 2027 there will be an increase in financial charges on BOTs and BTPs amounting to 24.9 billion, which will inflate the interest paid by the Treasury by a third. Meanwhile some bipartisan amendments to the decree Super bonus, presented to the Senate Finance Committee, where the provision is being examined, envisage diluting the period in which it is possible to distribute the Superbonus deductions into ten or fifteen years, compared to the four currently envisaged. The change would lower the weight of tax credits deducted every year, but would spread the effects over time on public finances.