EU Exec Rejects Greek, Italian Requests for More Fiscal Rules Flexibility
The Commission said existing fiscal rules already allow room for energy support and inflation pressures, while warning against repeated changes to the framework.
- The European Commission pushed back on Thursday against requests from Italy and Greece for extra fiscal leeway, arguing that existing rules already provide sufficient flexibility to manage current economic pressures.
- Italian Prime Minister Giorgia Meloni and Greek Prime Minister Kyriakos Mitsotakis sought exemptions for national support measures and requested that inflation be factored into European Union budget deficit calculations.
- European Economic Commissioner Valdis Dombrovskis warned that constantly changing fiscal rules risks undermining the bloc's credibility, noting the EU deficit is projected to reach 3.5 per cent of GDP while 10-year bond yields have climbed to 4 per cent.
- During Thursday's meeting in Luxembourg, Eurogroup President Kyriakos Pierrakakis reported mixed reactions from ministers while emphasizing consensus that support measures should be "temporary, targeted and tailored."
- The debate will move to the leaders' level, as Dombrovskis indicated the Commission would examine the Italian and Greek proposals in greater depth rather than issuing an immediate refusal.
59 Articles
59 Articles
At the Summit of October 15 and 16, interest is transferred to European decisions regarding the energy crisis, as the requests of Athens and Rome for greater fiscal margins meet the reservations of the Commission, which, however, is examining them. At the same time, concerns about public debt and disagreements between North and South limit the scope for agreement, international media point out, in the wake of the last Eurogroup meeting. The day …
EU exec rejects Greek, Italian requests for more fiscal rules ...
Brussels cannot make exceptions to national budgetary rules ‘all the time’, said European Commissioner Valdis Dombrovskis (Economy) following a meeting of finance ministers from the eurozone countries. Greece and Italy previously sent a letter requesting flexibility from Brussels regarding the budgetary rules due to high inflation and energy prices.
The flexibility demanded loudly by Italy (together with Greece) to combat the high prices, especially those of energy, finds cold - or rather icy - the countries of Northern Europe (Netherlands)...
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