EU Exec Rejects Greek, Italian Requests for More Fiscal Rules Flexibility
The Commission said existing EU rules already allow flexibility for inflation and energy shocks, but ministers will now take the dispute to leaders.
- 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.
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87 Articles
DEXYPTAGE - Rome surprised investors by rescheduling its deficit targets for 2027 and 2028 in early October, in order to devote more resources to defence and energy.
He was the economic manager of the Pd during Renzi's secretariat. Now, as an economist of Goldman Sachs, he reports the risks for Italian public accounts and calls speculation on the Belpaese. The article "Goldman puts in the sights of Italy." But the report is of a former manager dem comes from La Verità.
The PROBLEM for Italy is not only rising borrowing costs but also political uncertainty.
The €28 billion additional borrowing package approved by Giorgia Meloni's government for defense and energy sectors has brought concerns about Europe's debt crisis to Italy. Goldman Sachs predicts that high interest rates and widening budget deficits could push the country's debt-to-GDP ratio to 137% by 2028.
At the Eurogroup, the proposal to compensate for the costs of Dombrovskis inflation and the countries of the North are opposed.
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