Italian minister says EU deal on fiscal rules unlikely this year
Reuters
Published Dec 15, 2023 13:51
By Giuseppe Fonte and Angelo Amante
ROME (Reuters) - Italy's economy minister accused the European Union on Friday of being a politically weak entity unable to take swift decisions, warning the bloc was unlikely to wrap up negotiations on its new fiscal rules before the end of the year.
Speaking at a festival hosted by Prime Minister Giorgia Meloni's Brothers of Italy party, Giancarlo Giorgetti said the EU still lacked a real political dimension and compared it to a "condominium meeting" where attendees only look after their own interests.
"Europe is incapable of taking any strategic decision in a timely manner," Giorgetti said.
The minister, a senior member of the co-ruling League party, told the panel Italy would like the EU to draft its own tax for big tech companies such as Apple (NASDAQ:AAPL) to help finance its common budget.
"If Europe was a political subject, it would make such a decision," he said.
The minister sounded sceptical over the EU's chance of striking a deal on new fiscal rules, which need to be revamped after being suspended in 2020 due to the COVID-19 pandemic.
He said there was "little chance" of wrapping up negotiations next week at a video conference of the bloc's finance ministers, after Meloni this week threatened to veto any deal that would penalise Rome.
The European Commission has proposed tweaking the rules by introducing a fiscal adjustment path focused on spending cuts over four to seven years. Germany, the bloc's largest economy, has also called for highly-indebted countries, such as Italy, to cut debt by at least 1% of GDP each year.
Giorgetti said this month Italy wanted to pursue its fiscal adjustment over a seven year period, provided it implemented its post-COVID recovery plan, and "without further conditions".
"We are playing this game with courage but also with cleverness," Giorgetti said, commenting the negotiations.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.