Abstract
The adoption of Italy’s 2019 Budget Law was the outcome of a particularly arduous negotiating process, which saw the Italian government openly
challenging the fiscal discipline of the European Union (EU) in the name of
“anti-austerity”, “welfare”, and “social rights”. Although the confrontation
with the EU took centre stage in the public debate, at the very core of Italy’s
predicament lies the precarious state of its public finances, particularly the
high level of public debt, and its inevitable repercussions on the country’s
actual ability to advance human, including economic and social, rights. The
Italian case appears emblematic of a condition shared today by several other
countries, including many advanced economies, which increasingly rely on
debt financing for the realisation of their sovereign functions, including the
fulfilment of human rights. It also appears illustrative of the currently difficult position of Eurozone countries, torn between increasingly stringent EU
fiscal rules, and the demands of their socio-economic realities. After introducing the main elements of the post-crisis reform of EU fiscal rules, and its
implications for the fiscal and social policymaking of EU countries, this article illustrates the budgetary standards, including on borrowing, promoted
by international human rights law, to question whether, under the current
EU economic governance arrangements, States do enjoy the fiscal room for
manoeuvre actually needed to realise human rights. Finally, the article examines the adoption of the latest Italian budget in light of these standards, and
more generally in light of Italy’s socio-economic and debt situation. It concludes by arguing that the 2019 budget does not significantly advance social
rights, while its process of adoption and some aspects of the social measures
included raise concerns from the perspective of international human rights
standards.
challenging the fiscal discipline of the European Union (EU) in the name of
“anti-austerity”, “welfare”, and “social rights”. Although the confrontation
with the EU took centre stage in the public debate, at the very core of Italy’s
predicament lies the precarious state of its public finances, particularly the
high level of public debt, and its inevitable repercussions on the country’s
actual ability to advance human, including economic and social, rights. The
Italian case appears emblematic of a condition shared today by several other
countries, including many advanced economies, which increasingly rely on
debt financing for the realisation of their sovereign functions, including the
fulfilment of human rights. It also appears illustrative of the currently difficult position of Eurozone countries, torn between increasingly stringent EU
fiscal rules, and the demands of their socio-economic realities. After introducing the main elements of the post-crisis reform of EU fiscal rules, and its
implications for the fiscal and social policymaking of EU countries, this article illustrates the budgetary standards, including on borrowing, promoted
by international human rights law, to question whether, under the current
EU economic governance arrangements, States do enjoy the fiscal room for
manoeuvre actually needed to realise human rights. Finally, the article examines the adoption of the latest Italian budget in light of these standards, and
more generally in light of Italy’s socio-economic and debt situation. It concludes by arguing that the 2019 budget does not significantly advance social
rights, while its process of adoption and some aspects of the social measures
included raise concerns from the perspective of international human rights
standards.
| Original language | English |
|---|---|
| Pages (from-to) | 135-158 |
| Number of pages | 24 |
| Journal | Italian Yearbook of International Law |
| Volume | 28 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 18 Oct 2019 |
Keywords
- sovereign debt
- public budget
- human rights
- fiscal rules
- austerity
