STABILITY LAW

Since 2009, the Stability Law (l.n. 196/2009) officially replaces the Finance Act (l.n. 468/1978). The Stability Law and the Budget Law, constitute the public finance measures for the three-year period and they are the main instrument for implementing the policy goals defined by the Public Finance Decision (DFP). The Government must submit the Stability Law and Budget Law to the Parliament  by 15 October. These deadlines were extremely close to DFP in order to reduce the risk of misalignment caused by definition of economic goals and respective interventions. The Stability Law must consider the principle of balanced budget introduced by the Constitutional Law of 20 April 2012 n.1. This change is inspired by the need to strengthen the Italian commitment to the fiscal consolidation for the constraints imposed by the Fiscal Compact.

The Stability Law avoids vagueness in the measures content and the inclusion of rules whose financial effects are produced over the three-year program. It is a measure simplified compared to previous Financial Acts.

Editor: Giovanni AVERSA