Foreign Minister Federica Mogherini
and Economy Minister Pier Carlo Padoan on Friday denied there
was a crisis with Germany over differing views on how much
growth spending was allowed in EU treaties.
The two minister spoke after a long-distance spat between
the Bundesbank and Premier Matteo Renzi late Thursday.
There is no crisis with Germany over interpretations of
the EU's stability and growth pact, Mogherini said.
"There is no diplomatic crisis but a political discussion,
with other countries too, on how to interpret the stability
pact," she said amid continuing tensions on balancing fiscal
discipline with expansionary spending.
Italy, Mogherini said on Italian radio, "is exercising a
new European clout, which opens interesting possibilities".
The important thing, she said, is to have "a direct line"
with Berlin.
Padoan echoed his colleague.
There is "no problem" between Italy and Germany over how
much growth spending can be allowed in the EU, he said, adding
that he sees eye-to-eye with his German counterpart Wolfgang
Schaeuble.
"There is no problem with Germany. I had a long
conversation with my friend (German Finance Minister Wolfgang)
Schaeuble yesterday.
"There is no problem," Padoan repeated.
The exchange between the Bundesbank and Renzi came late
Thursday.
Renzi said he was not afraid of Bundesbank President Jens
Weidmann after the German called for "fewer words and more
deeds" on Italian reforms.
"If he thinks he can scare us he's got the wrong country
and in any case the wrong government," sources at Renzi's office
said.
Weidmann had criticised Renzi for "announcing" rather than
implementing reforms.
The sparring highlighted different perceptions in Rome and
Berlin about how far EU budget constraints can be eased to allow
for growth-stoking spending.
Renzi told the European Parliament in a speech inaugurating
Italy's EU duty presidency Wednesday that Europe must "change
and grow" if it is to survive.
The caucus leader of the centre-right European People's
Party, Manfred Weber, replied that countries like Italy could
not afford more debt - to which Renzi's Democratic Party
responded by stressing that a deal had been done at last month's
EU summit to trade greater budgetary flexibility for backing
Jean-Claude Juncker as European Commission president.
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