July 28, 2021

Minister Calviño opposes Spain's "commitment and determination" to the Italian pulse to increase spending and the public deficit

Minister Calviño opposes Spain's "commitment and determination" to the Italian pulse to increase spending and the public deficit



The Italian Government wants to spend more. Its budget project raises the deficit to 2.4%, but the European Union does not seem willing to allow that relief. Beginning with the Spanish Executive of Pedro Sánchez.

"We are following closely the situation in Italy and the capital markets," Economy Minister Nadia Calviño said on her arrival at the Eurogroup in Luxembourg. [reunión de ministros de la zona del euro]: "Nobody benefits from triggering an episode of financial instability, and the Government is committed and determined with budget stabilization, there is no doubt of our commitment to reducing the deficit and public debt, and I do not fear a contagion effect."

The community partners do not stop trusting Italy, which initially had announced some accounts with the commitment to maintain the public deficit at 1.6%, but which in the end has raised it to 2.4% in the three years. "Now I will try to explain what we are doing and our economic measures", said Tria, at the entrance of the Eurogroup in Luxembourg, who has also invited his European partners to remain "calm": "The debt in relation to GDP will fall in 2019. "

Minister Calviño, meanwhile, has insisted on compliance with community orthodoxy by Spain: "The rules are clear, the recommendations are clear, and our budgetary framework is framed in the community rules: I do not expect a stronger attitude No more lax with our position that is known by the partners, I have no fear, let's see the message, nobody benefits instability in the financial markets ".

The vice president of the European Commission and Commissioner of the Euro and Social Dialogue, Valdis Dombrovskis, He has been tough with Italy before the meeting: "We are waiting for the draft of the Stability Law, but at first glance the Italian budget plans" do not seem compatible with the rules of the Stability Pact ".

In the same line was expressed a few days ago the representative of the EU on economic matters, Commissioner Pierre Moscovici, who advanced that the European Commission will wait on October 15 – when the budget drafts are presented – to pronounce on the plans Italians However, the Commission recognizes that this is a significant departure from the "commitments made" by Rome. Moscovici then stressed that the Italian plans "increase public spending."

With regard to the concern expressed by Banco Santander, with a good part of its business in the United Kingdom, for the possibility of a "hard Brexi" and how that can affect the economy: "The exit from the United Kingdom is not desirable and It has negative consequences, the concern is with companies, commerce, citizens, and it would be desirable to have a good agreement, the interest is to have a good agreement, there is a lack of clarity and it is difficult to predict how it will end. "

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