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For the first time ever, euro area finance ministers are asking only one EU country to restore its budget.
Italian Finance Minister Giovanni Tria unanimously opposed the questions of the other finance ministers of the Eurogroup of the Italian draft budget on Monday evening. Several ministers expressed their views on the meeting and took a stand for the Commission's point of view on the Italian budget.
"There is a clear common vision of the situation and we look forward to a constructive discussion," said Hartwig Löger, Minister of Finance of the Presidency of the Council of Ministers of Austria.
Eurozone countries are urging Italy to submit a new draft budget by next Tuesday – the date on which the Commission called for the revision of the last budget.
The budget presented by the Italian government, consisting of the Lega Legis and the Five Star People's Movement, provides for both an increase in government spending, in the form of citizens' wages for the poorest and a reduction taxes. This should lead to a budget deficit of 2.4% of GDP, while Italy is the second largest sovereign debt of the EU after Greece, accounting for more than 130% of GDP. The latter is well above the rules of the Stability and Growth Pact of the EU, under which state debt can not exceed 60% of GDP.
Finance Minister Magdalena Andersson (S), at the EU meeting in Brussels, agrees with the Eurogroup that Italy needs to review its budget.
"All countries have supported the rules of the Stability and Growth Pact and on the Swedish side we still believe that rules are set to follow them," Magdalena Andersson told the Europa portal.
Italy has so far shown no willingness to revise its budget proposal. On the contrary, Deputy Prime Minister Luigi Di Maio said Monday in an interview with the Financial Times that he was convinced that the Italian budget would be a successful recipe for boosting the economy and reversing the economic development of the economy. country. Magdalena Andersson is skeptical.
– I do not see anyone else who does this interpretation.
EU Commissioner Valdis Dombrovskis stressed on Tuesday that the Commission's critical view of the Italian budget was that Italy was forecasting a bigger budget deficit than it had previously promised, but also that the EU was not going to be able to do so. Italy in economic growth position should invest in the reduction of its sovereign debt.
"It's not only the question of the size of your deficit, but also of the country's position in the economic cycle.
Mr Dombrovskis also stated that the Commission was ready to initiate an excessive deficit procedure.
"The Commission is always open to dialogue, but this requires a correction of the financial perspective because, it seems, Italy now largely derogates from the requirements of the Stability and Growth Pact.
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