(Finance) – The state of relations with Europe belongs to “a government that seeks to maximize the country’s benefits within what are the European rules”, as Italy has no “no intention to hack or break the systembut we are certainly reasoning and trying to defend the national interest”. The Minister of Economy and Finance (MEF) said Giancarlo Giorgettiin his speech at the celebrations for the 145th anniversary of Il Messaggero.
Giorgetti explained that on the PNNR is in progress “a epic battle between Italian and European bureaucracy“: on the one hand “there is incredible stress for the Italian administration, and we are doing our best”, “but at the same time there is an approach by EU technicians which is particularly quirky”. it is only Italy that complains about this formalistic approach, but everyone”, according to the Minister.
However, the number one of the MEF underlined that “we we continue to be optimistic about finishing 2023 on a positive notehowever the general context in Europe is not very favourable, objectively”, adding that “I have already said it for two months and I repeat it, it is clear that if Germany stops, the consequences for our industry are inevitable”.
On the reform of the Stability and Growth Pact – he said during the speech – “one is being played key game because it will concern the next decades. There are different positions, Germany has its position, France has others and Italy still others. When this negotiation ends with a compromise, it must be a compromise of satisfaction”.
“Stability and growth have a synthesis in the concept of sustainability – said Giorgetti – There are different positions in Europe and we agree that we need to reduce debt on GDP. But if we cannot guarantee growth this is not possible“.
The Minister also touched on the topic of monetary policy in the Eurozone. The fight against inflation undertaken by the ECB through the rate hike interest, will charge a non-trivial price in terms of growth for both Italy and Germany. “Monetary and fiscal policies must be carefully dosed – he said – If to beat inflation I have to induce a recession through monetary policy, then I fear that in this war, starting with Germany but then also Italy, we will pay a non-trivial price in terms of growth potential”.