ROM (Reuters) – Europe will decide whether to extend the suspension of its budget deficit and debt limitation rules known as Stability and Growth Pact (SGP), Economic Commissioner Paolo Gentiloni said on Monday in the coming weeks
“In the coming weeks we will decide whether and how to extend the freeze on the pact and in the coming months we will think about how we can recalibrate it according to Europe’s new strategic objectives,” Gentiloni told the daily La Stampa in an interview
The eurozone’s national debt soared in 2020 as governments borrowed to help families and businesses weather the restrictions and lockdowns put in place to contain the coronavirus outbreak last year their SWP suspended
Gentiloni also warned of an early termination of fiscal support measures to European economies during the pandemic, saying that “withdrawing too soon is more dangerous than too late”
Gentiloni said the new government, led by former head of the European Central Bank Mario Draghi, was fundamental to restore confidence in Italy and would help counter any opposition from other European member states regarding reform to overcome the SWP
He added that recent changes and additions to Italy’s national recovery plan – the program that sets out how the country will spend more than 200 billion euros ($ 242 billion) from various EU funds on the Revitalizing Post-COVID-19 Pandemic Economy – Laying A Good Foundation, But More Was Needed
“Time is running out, however, the Draghi government has the right profile and parliamentary support to make these further efforts”
He also urged Italy to implement reforms that would gradually reduce its debt and approve public finance support policies that would not create new permanent debt
All offers were delayed by at least 15 minutes. For a full list of exchanges and delays, see
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News – USA – EU decide to extend suspension of Stability pact in the coming weeks: official tells paper
Source: https://www.reuters.com/article/us-eu-economy-italy-gentiloni/eu-to-decide-on-extending-suspension-of-stability-pact-in-coming-weeks-official-tells-paper-idUSKBN2AM0G1?il=0
