Stability pact reform is at the center of the work of the Council of Ministers of Economy in Luxembourg, and there is a sudden rift between France and Germany. While Paris raises the barricades against any automatism, Berlin wants the opposite, namely clear and equal numerical limits for all, looking above all in the most indebted countries. Italy is among them, and Finance Minister Giancarlo Giorgetti wants a temporary “golden rule”, an exception to the expected rule in the spending trajectory, seeking “attention” or “special treatment” for investments that are priority in the EU, “especially those related to the environment, energy and the digital transition.” those”.
Time begins to tick. Ministers should reach an agreement for the autumn and close the reform process by the end of the year, i.e. when the clause that suspends the application of rules at the beginning of the pandemic expires, or in any case before the end of the legislative period. Paolo Gentiloni, European Commissioner for the Economy, warned that “Time is not unlimited”.
The Commission’s reform proposal focuses on medium-term spending plans, which States must agree with the executive and which will lead to sustainable debt reduction in the long run. Germany wants it not only to impose a restriction to reduce the deficit (by 0.5% per year for those who exceed the 3% ceiling, as recommended by the executive), but also to review and review the debt that should be reduced for the most indebted countries. 1% per year. German Finance Minister Christian Lindner calls for “common rules that are the same for all”. Finland, Sweden and the Netherlands in similar positions. His French counterpart, Bruno Le Maire, instead “against the automatic and uniform rules in the Stability and Growth Pact. We have already tried to set automatic rules and uniform rules in the past: this led to stagnation”.
Giorgetti and Italy call for adequate attention to be given to “investment policy, particularly investments that are considered priority in Europe”, namely “those related to the environment, energy and the digital transition”. In other words, those of NextGeneration Eu and Pnrr. These are investments of limited duration and whose quantity is already known.”
“Italy and the Italian Government welcome the work of the EU Commission on the Stability and Growth Pact reform,” said the owner of Via Venti Settembre. He then highlighted how “national sovereignty should be unified and harmonized at the European level from the very beginning, even in methodological and technical aspects that should not get in the way of political considerations”.
Giorgetti reiterated that our country is open to discussions with the Commission and all Member States, bearing in mind that “each has its own characteristics and we clearly agree that the gradual reduction of debt is a fundamental condition for stability, sustainability and growth”.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
