The reform of the Stability Pact must be based on simplification, investment and a realistic debt reduction. This was stated by the European Commissioner for Economy, Paolo Gentiloni, in an interview with the newspaper El Pais reported by ANova agency.
“I don’t want a new chapter of the debate that has divided us over the past decade but the first chapter of a new story,” he said. It is about setting “good rules for the post-pandemic and climate transition”. In this regard, Gentiloni indicates three points, the first of which is simplification. “The rules are very complicated and often based on unobservable criteria,” he said. The second point is given by investments.
“We have an extraordinary need for public investment in the next decade. For the climate transition alone, we estimate around 500 billion euros per year until 2030”, continued the Commissioner. Third, “following the pandemic we have accumulated a very high debt, 100 percent in the eurozone. The Maastricht Treaty says it should be 60 percent. We don’t want to change the treaty but the path of debt relief must be more realistic “, explained Gentiloni.
Asked by “El Pais” on how he intends to convince the so-called “frugal countries”, such as the Netherlands, Austria and Sweden, the commissioner replied that “there are different opinions but everyone knows the difficulty of following the path of the market and the great need for investment “. “There will be long discussions of course and we will need the agreement of all states. Some changes will not require unanimity but in fact we need general consensus”, he continued.
“The second quarter was good in many European countries, especially those that experienced a deep recession in 2020. The third quarter could also be positive, perhaps not at the same level across Europe, but positive”, continued Gentiloni.
Gentiloni will land in Madrid in the evening. In the Spanish capital he will have meetings with the president of the government, Pedro Sanchez, and with the vice premieres Nadia Calvino and Yolanda Diaz. The arrival of European funds from the Next Generation Eu is subject to the two reforms, which the Commissioner considers “very important”.
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