New Stability Pact is an improvement says Giorgetti

Economy Minister Giancarlo Giorgetti
said Wednesday that, while he does not consider the European
Union's new Stability and Growth Pact ideal, it is a significant
improvement on the EU's old budget rules.

   
On Tuesday MEPs from the parties of the Italian government's
ruling coalition abstained in a vote in the European Parliament
on the Pact, as did those from the opposition, centre-left
Democratic Party (PD), while the opposition 5-Star Movement
(M5S) voted against.

   
The Pact was approved anyway.

   
"It's certainly a compromise. It's not the proposal that I had
taken to Europe," Giorgetti told the Lower House, where the
government's DEF economic blueprint is being examined.

   
"(But) it is a step forward with respect to the budget rules
that would have come back into force in 2025.

   
"This Stability and Growth Pact does not exactly respond to the
criteria of those who think that growth depends on the 'LSD'
model, that is laxity, subsidies and debt.

   
"I continue to think that the (right) growth model is the one
that made our country great in the post-War period via
sacrifice, investment and labour".

   
The new pact gives countries who are not respecting the budget
rules seven years to bring their debt and deficit levels down,
up from four previously.

   
States are still required to bring their debts under 60% of GDP
and deficits under 3%.

   
Deputy Premier and Foreign Minister Antonio Tajani said it would
be wrong to read too much into the decision to abstain on
Tuesday.

   
"Abstaining does not mean you are against," said Tajani, the
leader of the centre-right post Berlusconi Forza Italia (FI)
party.

   
"It means you are saying that this pact can be improved".

   


   

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