Brussels There are those who did Doubt to the endBut the reform agreement Stability Pact It seemed within reach when French Economy Minister Le Maire and German Finance Minister Lindner announced the details from Paris together on Tuesday evening ahead of yesterday’s extraordinary Ecofin. “Italian Friends Aligned”. It was like that. It takes less than two hours to reach via video-link requisite integrity: A Franco-German compromise was reached, to which Italy also contributed, with the mediation of Spain, which holds the EU’s rotating presidency.
Minister Calvino was amused yesterday: “We managed to reach the best deal at the best time”. He then added: “This text defines clear and realistic financial rules for the 21st century, guaranteeing the necessary investments and reforms in key strategic areas for the future of Europe”, namely double green and digital transformation and security. This is precisely the difficulty of months of negotiations.
Germany, Frugals leader, France, along with Italy and other southern countries with high public debt, wanted common measurable parameters for reducing public debt and deficits, and wanted to preserve the ability to invest and maneuver without compromising future growth. Then that too The spirit of reform presented by EU Economic Commissioner Paolo Gentiloni And by Vice-President Valdis Dombrovskis: Simplification of old rules and national plans, based on the net primary costs of debt repayment in four or seven years, taking into account national specifications.
Also, Germany, but not the Netherlands, insisted on the addition of two safeguards on debt and deficit.. “The introduction of these additional numerical parameters certainly makes the whole mechanism of the rules more complicated,” Gentiloni admitted, adding, “The Commission will work a lot with the various countries to implement these medium-term plans. With the aim of ensuring stability and growth together.” But he also assured that “all the numerical parameters are parameters that can be addressed by different countries, including Italy”. They are realists.” In return, debtor countries take home one Flexibility for 2025, 2026 and 2027 High interest on debt and linked to green, digital and defense investments: the Commission will take this into account in the excessive deficit procedures when defining the annual reduction parameter, so as not to compromise the positive effects of the Pnrr.
Economic Minister Giorgetti did not use triumphant tones for the deal, which was described as “historic” by ministers.. Italy participated in the agreement “with a sense of the inevitable compromise in Europe, which requires the unanimity of 27 countries”. For Prime Minister Meloni it was “a compromise of common sense” and “an improvement for Italy compared to the conditions of the past”. PD leader Schlein criticizes: “A bad compromise for Italy”.
The ESM game is open, whose approval returns to the Chamber today. According to Dutch minister Sigrid Kok, these fiscal rules will lead to “ambitious and sustainable debt reduction” and “act in a counter-cyclical way”. Negotiations with the EU Parliament will now begin and only then will there be a final green light.
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