Italy’s largest union has launched a referendum campaign against the EU fiscal compact, a draconian budgetary cap which is set to make austerity permanent across the 27-nation Eurozone.
The CGIL is calling for a repeal of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union that was signed on 2 March 2012 by all member states of the European Union (EU), except the Czech Republic and the United Kingdom. In Italy this new turn in the EU austerity screw signifies 45 billion euros annual budget cuts for two decades.
One of the new budgetary rules means a country whose debt / GDP ratio exceeds 60% of GDP must reduce this ratio by a fixed amount each year. It is economically illiterate because countries like Italy – or Belgium – have had decades of public debt at 100% or more of GDP (Japan’s was even at 200%) without generating a…
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