by InTrieste
Last Friday, in a significant move towards fiscal prudence, Everest Bertoli, the Assessor for Financial Policies of Trieste, unveiled a comprehensive plan to expedite the repayment of a substantial portion of the city’s municipal debt. The announcement was made during a press conference held in the Sala Giunta of the City Hall.
Under the theme “A Good Administration to Ensure the Future of the City and the Youth,” Bertoli detailed the measures aimed at reducing the city’s financial liabilities and paving the way for economic stability and growth. Journalists were provided with a detailed report titled “Financial Analysis for Active Debt Management,” prepared by Finance Active at the city’s behest.
A Strategic Financial Move
Bertoli emphasized the significance of the initiative, stating, “Today I am presenting an important and fundamental measure for a healthy municipal administration, not only for the immediate future but also for those who are currently 10 or 12 years old. This measure is not the first, nor will it be the last in this regard. The task of the Public Administration and healthy politics is not only to manage the present but also to create the conditions to build the city of the future.”
In the current economic climate, with national public debt soaring and the central government implementing stringent spending reviews, Trieste’s decision to proactively reduce its municipal debt stands out. Bertoli highlighted this proactive approach, noting that the city had chosen to settle a significant portion of its debt.
The Numbers
Delving into the specifics, Bertoli explained, “The municipal debt this January amounted to over 69 million euros, with 225 loans and an average remaining duration of 18 years and 6 months. We have selected a package of 96 loans, totaling over 27 million euros, and we are moving to settle them. The specific resolution has already been approved and will come into effect from July 1.”
The effective rate will be determined between June 17 and 31. Bertoli projected that this move would result in a positive fiscal impact of 2 million euros per year starting January 1, 2025, in terms of additional current spending capacity. Furthermore, the initiative is expected to generate an additional 1 million euros for current spending within the current year, effective from July 1, 2024.
Long-Term Vision
Bertoli underscored the rarity and significance of such a measure in Italy, stating, “Few municipalities in Italy have had the opportunity to adopt such measures. By December 31, 2024, the municipal debt will be halved compared to the beginning of the year. This positions Trieste among the top in the ranking of the most virtuous municipalities in Italy for per capita debt.”
The ultimate goal, Bertoli affirmed, is to create a financially stable environment that empowers future generations. “Our goal is not only to generate resources for the immediate future, thus being able to act without raising taxes for citizens, but also and above all to give new generations the freedom to choose the best policies for the future of the city and the territory,” he concluded.
