San Marino. Budget 2023, the Council approves the issuance of 450 million euros of public debt
In the morning, the Great and General Council concluded the examination of the additional amendments to Article 1 of the 2023 budget forecast presented by RepubblicaFuture.
A package of about thirty proposals, most of them discuss yesterday and of which only one was shared by the Chamber, that relating to reductions in nursery school fees. While none of the 5 additional RF amendments to article 1 examined today has been approved.
During the morning, after a long debate, one of the most important articles of the Budget was approved, Article 2 relating to the issue of Public debt securitiesreferring in particular to the rollover of public debt securities, to provide solutions, by 31 December 2023, with the issue of public debt securities to be placed on the national or international market up to 450 million euro.
For Nicholas Renzi, RF, the art. 2 is “the heart of the Finance Act”. In fact, “in this legislature the center of financing of state activities – he explains – has become the creation and management of foreign debt”. But “it is evident – he observes – that in the face of the first foreign debt issue, here we find ourselves at a figure increased by more than 60 million euros”. Luca WoodsLibera points the finger at the lack of spending cuts and development measures in the Budget Law: “The choice is only to go to international markets to ask for a loan, and it is a very disappointing choice”.
Guerrino Zanotti, Libera, underlines her concern about “the government’s commitment to be able to issue securities for a sum of 60 million, in addition to the 390 million needed for the roll over, because we must honor the debts issued by the end of 2023”. It is clear, according to the adviser, that “we are heading towards a season of debt, without putting in place effective actions that can help the public finances to support this debt”. Matteo Bye, Libera, calls for “transparency on how this money is spent” and to “start working together to figure out how to spend it”. “You have to do a spending review – he says Ferdinand BindiRf- forgetting the consensus and proving to be statesmen who look a little more at the la through their own noses”.
For Stephen Giulianelli, Pdcs, looking at the use of the liquidity deriving from the introduction of public debt securities – 340 million as a roll over, 50 million as a repayment of internal loans and 60 million as a prudential reserve – “we can say that the debt situation remains under control ”. To those who ask to cut current spending, they ask: “Do we really want to reduce debt to reduce spending on health, education, etc., or do we want to make all services related to the public administration more efficient?”. For Will be AccountsRf, the problem cannot be trivialized: “If we use the borrowed money only for current expenditure, without investing it in medium- and long-term country-projects, we will continue to plug the holes indefinitely, remaining in this stagnant condition ”.
“The question of next year’s development has to do with the context of the European Union- he clarifies Gerard YoungstersNpr- the only real framework in which to place most of the country’s economic development actions”. Irò Belluzzi, Libera, following the thread of the discussion, invites acceptance of the EU framework and therefore the consequent changes for the banking system. The goal, you explain, must be to get funding from the ECB. “I believe that the majority and the government have laid the foundations for stabilization – he points out Francis MussonPdcsche- which must go ahead on the tracks of restructuring and reorganization and economic development decision”.
At the conclusion of the debate, the Sds Marco Cats clarifies how in the budget revenues have been underestimated and expenditures overestimated. He invites those who talk about growing debt to read the IMF report. “The debt has a downward curve, it is not rising and the Fund tells us ‘try to bring the IGR reform forward as much as possible to bring the debt down faster’”. So “now we have to reinforce, so make way for new development projects but even here you are inconsistent – send the opposition to say – you have moved the discussion forward on the next paragraph”, relating to the Des project. Article 2 is finally approved.
Read the full summary of the session