Giorgetti, ‘no to too stringent EU constraints, they hinder growth’

‘seriousness means not accepting impossible commitments’

No to “too stringent” rules that hinder growth, no to “impossible” commitments to maintain, more space for investments and 7-year recovery plans in the presence of ambitious Pnrr, as in the case of Italy. The Minister of Economy Giancarlo Giorgetti at a hearing before the joint Budget Committees of the House and Senate sets Italy’s goals for the reform of the EU Pact ahead of the Eurogroup and Ecofin on 7 and 8 December in Brussels.

“The negotiating position we are holding – he underlines – is one of willingness to introduce debt and deficit safeguards, m

only on condition that
are not too stringent and, as I have argued, do not actually prevail over the spending rule”. For the minister, in fact, “the consolidation needs should be compatible with the intention of promoting sustainable and lasting growth of the economy, which could be hindered by excessive constraints and overly stringent rules.”

A position that the minister reiterated throughout the hearing. “The sustainability of public finances – he reiterates – cannot be achieved through paths of a

excessively rigorous adjustments, why this
to damages growth fundamentals and worsens the debt dynamics in the medium and long term. The Government is willing to seek a solution, but it must not result in an excessively complex and potentially contradictory system.”

Rules that do not stifle growth, but also more space for smart and green investments and seven-year recovery plans but without further raising the bar of constraints. “We have placed how essential condition that the new economic governance gives sufficient space to investments for the digital and ecological transition – explains Giorgetti – and, in the first cycle of application of the new rules, allows countries such as Italy, which have agreed on ambitious Recovery and Resilience Programmes, to be able to access the extension of the adjustment period to seven years”. All of this , he continues, “without the imposition of further conditionalities, but only on the basis of the Member State’s commitment to continue the reform and investment effort undertaken with the Pnrr”.

Said this “reduce the high public debt and excessive deficits is an objective of the Government and it is in the general interest of the country“, the owner of Via XX Settembre is keen to underline. But “the setting of a minimum rate of debt reduction and a maximum deficit objective must, so to speak, safeguard the prudent management of the national public finance framework, but it should not turn into further stringent rules that excessively limit the budgetary policies of European countries.”

On the other hand, “seriousness means making commitments that can be kept and not commitments that no one in this country could keep”, therefore, he concludes, “to commitments that are impossible to keep, I don’t think that out of seriousness we can say ‘yes‘”.