The new Stability Pact resembles the demands of Paris and Berlin more than those of Rome. The latest proposal from the Spanish presidency of the EU Council, presented yesterday at Ecofin, puts in black and white the so-called “landing zone” agreed between the 27, in which more rigorous criteria for reducing deficit and debt are guaranteed. The Franco-German axis leads the negotiations and the initiative does not disturb the mediating role played by the Spanish presidency. On Italy’s side is the weight given to investments in defense in the calculation of a possible excessive deficit procedure and the possibility of extending the period of national recovery plans – from 4 to 7 years -, also based on investments from the Pnrr and co -national financing. Furthermore, Rome is not satisfied with the direction the negotiations are taking.
Italy is not available to sign any agreement on the Stability Pact and believes that in the end returning to the old rules is not an absolute evil, Mef sources reveal on the sidelines of the Ecofin meeting.
It is, essentially, a question of seriousness with regard to commitments. And Rome intends to make the commitments it knows it will be able to fulfill. Italy actively participates in the work and the attitude is positive, but some proposals circulating now do not have Italy’s support. In short, Rome would not accept a signature at all costs and rather the reasoning is: if we have to go in a direction that is unfavorable, it is better to return to the previous rules, which are already known. The Spanish Economy Minister, Nadia Calviño, reports that “she has not heard these comments from any Member State in recent weeks. On the contrary, what we heard today was a very strong commitment to the adoption of the new rules and a strong appeal from all institutions.”
The draft, however, is not closed and work continues. There is still a lack of an updated legislative text with the numbers to be achieved, but the intention remains to reach an agreement for Ecofin on December 8th. The EU presidency announced a new extraordinary Council for the end of November to tighten the circle on the agreement.
Source: IL Tempo
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
