A cut in interest rates by the
European Central Bank (ECB) might help European Union member
states reach an agreement on the European Stability and Growth
Pact, Deputy Premier and Foreign Minister Antonio Tajani said on
Sunday.
"If the ECB finally lowers rates as requested for months, this
could also influence the reaching of an agreement on the
stability pact," Tajani told the last day of the annual Atreju
political festival organised by Premier Giorgia Meloni's
right-wing Brothers of Italy (FdI) in the gardens of Rome's
Castel Sant'Angelo on Sunday.
However, "since there is no hurry, we believe that the whole
macroeconomic issue of European financial policy must also be
addressed, looking also at all the other aspects," continued the
leader of the majority coalition partner Forza Italia.
"I am thinking of fiscal harmonisation, the banking union and
the capital market," he added.
EU finance ministers are due to hold an extraordinary ECOFIN
meeting by videoconference on Wednesday in an attempt to reach a
deal on the new budget rules to replace the old European
Stability and Growth Pact, which was suspended in 2020 during
the Covid-19 pandemic and is due to come back into force next
year if an agreement is not found on the new Pact before then.
The new fiscal rules are expected to see the revival of the key
3% budget
deficit to GDP ratio, but may be more forgiving on the pace set
to get down to that rate by countries that do not meet the
criterion.
Italy also wants to see them featuring more stimulus for growth
and Meloni has said she may veto a deal that does not meet
Italian expectations.
ALL RIGHTS RESERVED © Copyright ANSA
