Eurogroup, the Spanish Presidency announces a proposal for the Stability Pact

Experts, especially ECB chief economist Philip Lane, are talking about a “soft landing” for the economy in the euro area in the near future. That is, a step ahead of the recession that should be averted for the resilience of our economies, although the fourth quarter began with another month of decline. This is what we are talking about today in Brussels at the Eurogroup table with the finance ministers of the various governments who met at 3 p.m. (Ecofin is the Council of the European Union when it is composed of the finance ministers of the countries of the European Union). Union, every month before the ECOFIN meetings there is a meeting of the so-called Eurogroup, an informal body that brings together the economy and finance ministers of the countries that are adopting the euro.

Growth is also slowing in Europe as a result of the tightening of monetary policy and the complex global market situation, which is also shaken by war events.

The EU Commission will publish the new economic estimates on November 15th. On November 6, the S&P Global PMI Index fell from 47.2 in September to 46.5 in October: the decline in euro area activity accelerated since September and was the sharpest since November 2020.

One of the problems that still needs to be solved and for which the Minister of Economic Affairs must again be held accountable Giancarlo GiorgettiAlthough it is not an officially planned topic, it concerns the ESM. The state austerity mechanism was blocked because Italy’s signature was missing. Our country is conducting parallel negotiations with Brussels on a reform of the Stability Pact and, in particular, is calling for the PNRR’s investment expenditure to be separated from the calculation of the structuring of public debt. The compromise legislative proposal will not be presented until a month later at the earliest.

The premises announced a complicated meeting, as suggested by Minister Giorgetti’s words a few hours ago: “European rules punish investments,” he said. And he referred to the “very dangerous bureaucratic regression” of the EU.

The EU Economic Commissioner, Paolo GentiloniAt the beginning of the meeting he said on the reform of the Stability and Growth Pact: “I think that the Spanish presidency is doing an excellent job,” which points to a possible point of failure.” And then he clarified: “What is what?” What is important I have the impression that, thanks to the impetus given by the Spanish Presidency, the various countries are discussing with each other on the basis of the Commission’s proposal. I’ll add that and underline it Time is not unlimited. If no agreement is reached on the new rules, the previous rules will come into force again“.

Immediately afterwards, the interim Spanish Deputy Prime Minister and Minister of Economy Nadia Calvino, said that tomorrow at the Ecofin Council “a ‘landing proposal’ will be presented that can serve as a basis for a balanced political agreement” on the reform of the Stability and Growth Pact and that will allow us “to complete the work on the legal texts “. “. The minister, whose country holds the rotating EU presidency, explained that “at a technical level, an agreement has already been reached on 70% of the texts”. Calviño said he had spoken to all the finance ministers and saw a constructive spirit in them , who is in favor of an agreement on the reform by the end of the year.

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