. 4 points in 2011 and by around 1. 2 points in 2012 and 2013. at the end of the planning period, the target for net borrowing is set at 2. 4 per cent of gdp. the primary balance is expected to improve by 0. 6 percentage points of gdp in 2010, reaching a surplus of 0. 2 points, and by 3. 3 points over the following three years. the efpd does not give details of the planning scenario unlike the previous efpd, the present planning scenario does not give information on the level or composition of revenues and expenditure. the document states that on the revenue side the corrective action will tend to reinforce the measures to combat tax evasion and avoidance. on the expenditure side, the aim will be to ensure that the regional health service deficits are rectified and to introduce more efficient methods of disbursing public services. the lack of information on revenue and expenditure targets makes it difficult to evaluate some critical aspects of the fiscal policy outlined in the efpd. for example, use of the current legislation basis, among other things, means that the baseline projection indicates a sharp decrease in capital expenditure in 2010. in particular, investment expenditure – after rising by 6. 3 per cent in 2009 – is expected to fall by 6. 6 per cent ( excluding, for 2009, outlays for the repurchase of real estate securitized in 2002 ), returning to its 2006 value. in a cyclical phase that is likely to remain fragile, this public - sector support of aggregate demand should be maintained. structural net borrowing, amounting to 3. 1 per cent of gdp in 2009, is projected to improve steadily until 2012 ( by around 0. 3 percentage points per year ) and remain virtually stationary in 2013. in 2013 less than a third of the recession - related increase in the debt will have been absorbed the public debt is projected to increase by a further 2. 9 percentage points of gdp in 2010 ( to 118. 2 per cent ) before it begins to decline in 2011, reaching 114. 1 per cent in 2013. at the end of the planning period, less than a third of the increase in the public debt associated with the recession will have been absorbed. in the future, in implementation of the bill on public accounting and finances now before parliament, the efpd will be replaced by the decision on the public finances as part of a reform that will also affect the timing and content of the documents marking the

2 per cent over the medium term. the interventions prevent the imbalances from worsening ; on their own they cannot overcome the underlying causes. at european level there is an urgent need for a governance in which budgetary discipline and solidarity are mutually supportive ; there is also an immediate need to implement the instruments of financial support for managing the crisis. but without a decisive and lasting response from appropriate domestic policies that, by promoting growth, remove the imbalances in the public finances, the first objective is unattainable, the second a palliative. the work begun with the first report of the financial stability board in april 2008 has proceeded to good effect. much has been done, both in implementing it and in drawing up new regulations. it is now necessary to continue with the transposition of the new rules into national legal systems. international coordination has been a key factor in imparting impetus to the reform of international finance ; it remains crucial to its implementation. the contribution of the g20 leaders has been fundamental. to crown the process, the financial stability board will submit a report to the next g20 summit in cannes in november with specific recommendations regarding systemically bis central bankers ’ speeches important financial institutions, the limits to be imposed on the shadow banking system, and the reduction of the systemic risk associated with otc derivatives business. the italian banks italy ’ s banks have to face the impact of sovereign risk on their funding, on the value of the collateral they provide for refinancing, and on their capital market. but our banks ’ exposure to greece, ireland, portugal and spain is modest, amounting to about 1 per cent of total system assets. their investment in italian government securities is substantial. although the banks ’ short - term liquidity position continues to be in balance as a whole, it is affected by the persistence of strains, particularly on the wholesale markets, where fundraising has slowed markedly since the summer. the bank of italy continues to ask banks to maintain balanced liquidity positions ; these positions undergo careful monitoring at weekly intervals by the bank ’ s supervisory area. though diminishing, the rate of growth in lending to both households and firms remained higher in august than the rates for the euro area. in september the three - month growth came to 3. 9 per cent on an annualized basis. however, surveys of firms find a tightening of lending standards and growing difficulty in obtaining credit. the bank lending survey conducted by the eurosystem also finds signs of a tightening