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Italy budget won't change says Renzi after EU summit

Italy budget won't change says Renzi after EU summit

Premier points to French deficit, German trade surplus

Rome, 21 October 2016, 15:41

ANSA Editorial

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The measures in Italy's 2017 budget bill won't change, Premier Matteo Renzi said after an EU summit in Brussels Friday.
    Italy "is not asking for flexibility", Renzi added, but is invoking "exceptional circumstances" for spending on relief and reconstruction in the aftermath of a devastating August 24 earthquake in central Italy that caused billions in damage, plus spending on asylum seeker processing and reception.
    Italy and Greece bear the brunt of the refugee crisis as the first European landfall for people fleeing wars and persecution in Africa and the Middle East.
    "We didn't discuss the budget, but I want to make it clear we have not asked for flexibility, because flexibility is only granted once," the Italian premier explained.
    "We've made a spending request under treaty exceptional clauses for the earthquake and immigration". It's up to the European Union to point out parts that aren't convincing or raise doubts, he said. "But the substance of the budget measures won't change".
    Italy's budget deficit next year will be the lowest in the last decade, he added.
    "That means it's the lowest budget since the Berlusconi, Monti and Letta administrations. The only government that achieved a lower one was that of (center-left Premier Romano) Prodi in 2007," he said. "We're on a tough road to keep our commitment to growth while respecting the rules," Renzi stated. "We want to change the rules but as long as they aren't changed we'll respect them".
    The U.S. model for boosting growth lifted its economy out of a downward spiral while EU austerity has not, he added.
    "We think the culture of austerity, which is continuing to hurt Europe, is a mistake. The Obama model has worked...Europe's model of austerity hasn't," said the Italian premier.
    Renzi went on to point out that from an EU standpoint, Italy's accounts are in better shape than those of France and Germany.
    "Every year (an EU) letter arrives (on the budget), there's a debate, and all the pundits write 'who knows if Italy will make it and get the EU green light'," he said. "But as I recall, our deficit is slightly above 2% and France's is at 3%".
    "I think that Germany's balance of trade has many problems, starting from a trade surplus that doesn't respect EU rules and I hope our friends can move to rebalance it," Renzi added. "We have a privileged relationship with Germany - a piece of Italy's economy depends on Germany and vice versa. We disagree on many things - that's what happens between friends.
    But Europe needs an unbowed Italy. It would have been better if we'd raised our head in the past. Italy can't come here just to ratify decisions (taken by others)... I will never be able to accept the attitude of coming here and always saying yes to everything".
    Italy's young reformist premier also said he was defending national interests and not playing Giamburrasca, the fictional Italian archetype of a restless and protesting boy. "No one is pointing the finger to spark a row, but I'm defending the national interest because the national interest is a value among European ideals," he said.
   

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