Matteo Salvini calls for a budget adjustment, while Forza Italia is holding back. After the cold shoulder of a 3.1% deficit/GDP ratio, which prevents Italy from exiting the EU infringement procedure, the hoped-for spending margins are dwindling, and with elections approaching, government shareholders are fretting.
Here's the political crux. Salvini makes it clear right away: "As a ministry, I alone need eight billion in cash at the end of the year to pay for the work already done. We need a budget adjustment of billions."
The momentum was immediately dampened, openly by Forza Italia and—off the record—by several FdI parliamentary sources who dismissed the possibility of a deviation. "We continue to manage public finances carefully. Moreover, that's what Giorgetti says...", stated Forza Italia member Raffaele Nevi.
In the arduous task of holding everything together, the government could instead focus on further negotiations with the EU. The crux of the matter is how to implement an expansionary measure that can "cut taxes" without further impacting the deficit-to-GDP ratio. And how to reconcile all this with the required flexibility on energy and defense.
The promise filtering through from various FdI sources is that of a "maneuver as we've always done it, avoiding deviation if possible." Amid the chaos of contradictory statements and a political line yet to be defined, the Brothers' official position is entrusted to their head of the Economy, Marco Osnato: "Whoever pursues a balanced budget at all costs sacrifices growth and jobs. We have chosen to stand by families, while remaining within the agreed-upon recovery path."
Antonio Tajani also spoke on the issue last night: "Now we'll evaluate it, we'll meet with the majority leaders, starting with the Prime Minister, and we'll see what to do," he said regarding Salvini's request, promising that "in any case, it will be a growth-oriented move."
