August 1, 2021

Calviño affirms that there is no contagion to Spain due to the situation in Italy

Calviño affirms that there is no contagion to Spain due to the situation in Italy


EFE

Updated:

The Economy Minister, Nadia Calviño, said today that she is not worried about a possible contagion to the Spanish economy of the turbulence generated by the decision of the Italian Government to raise its public deficit, since they do not perceive this effect.

"I do not have a special concern for a contagious effect that we do not see anywhere," Calviño said upon his arrival at the meeting of the eurozone's economy and finance ministers (the Eurogroup) held in Luxembourg today.

The head of Economy argued that this is because the Spanish government "is absolutely determined and committed to budget stabilization" and "there is no doubt" of its "commitment to reducing the public deficit and the stability of public debt" .

However, he noted that the Executive follows "with a lot of attention" the development of the situation in Italy and in the capital markets in general.

The minister spoke about the decision of the Executive of Rome to raise its public deficit during the three-year period from 2019 to 2021 to 2.4% of its GDP, well above the goals set by the previous government, which led to the commissioner of Economic Affairs, Pierre Moscovici, to warn that this is outside the community rules.

Calviño ruled out, on the other hand, that the Italian situation will change the attitude of Brussels with respect to the Spanish budget and the new path of deficit that the Socialist Government wants to approve, which sets objectives over those established by the previous Executive.

"Our budget framework proposal next year is perfectly framed with the community standards and I do not expect a harder or more lax attitude," he said.

The minister said that "at the moment" does not fear that the situation in Italy will affect the financial stability of the eurozone, but indicated that the euro ministers they will wait to see what the message is that the Italian Minister of Economy, Giovanni Tria, transmits to you today in the Eurogroup.

"Nobody benefits from a situation of instability in the financial market and less than anyone in Italy," he said.

The Government of Italy announced on Thursday that it will raise the public deficit to 2.4% of GDP in the three-year period from 2019 to 2021, well above the targets set by the previous Democratic Executive (0.8% in 2019 and 2020, and 0.2% in 2021), and 1.6% that would have preferred his own Economy Minister, Giovanni Tria.

The Executive of the Five Star Movement and the League defends that it remains below 3% considered excessive by Brussels, but the reaction of the market caused the Milan Stock Exchange to fall and increase the interest on the Italian debt.

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