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French Finance Minister Bruno Le Maire sees no immediate threat of recovery from the euro crisis, but believes that the currency area is not sufficiently prepared for such a risk. For the moment, there is no reason to fear that the fiscal dispute between Italy and the European Commission will affect the entire euro area, said the minister in the edition Sunday of the newspaper "Le Parisien".
"We do not see any infection in Europe," he said. "The European Commission has approached Italy and I hope that his country will take this hand."
The European Commission rejects the government's draft budget in Rome for 2019 and calls for amendments. The dispute resulted in a mbadive sell off of Italian government bonds on the financial markets. Investors fear that another escalation will lead to a new debt crisis.
The Mayor reaffirmed his call for swift reforms to strengthen financial stability in the monetary union. "Is the euro zone sufficiently prepared to face a new economic or financial crisis? My answer is no," he said. "It is important that we apply what we have suggested to our partners to achieve a strong banking union and an investment budget for the euro area." Similarly, the French Finance Minister had already spoken on Friday night after a meeting with his German colleague, Olaf Scholz. According to Eurozone officials, the dispute with Italy will lead to an extension of the reform process and, ultimately, a relaxation of the process.
(APA / Reuters)
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