Mario Draghi Emmanuel Macron Financial Times
Draghi and Macron team up against the hawks of Northern Europe: “Opaque and complex rules, the Pact must be reformulated”
The European Stability Pact it does not work this way. And France and Italy team up to reformulate it. “Europe’s fiscal rules need to be reformulated if we are to ensure recovery“, so write the Italian premier Mario Draghi and the president of the Elysée Emmanuel Macron in a letter published this morning in the prestigious British business newspaper Financial Times.
In the article written in four hands, the two leader argue that to have something to do with the objectives of the economic recovery “debt levels must be lowered”, but not “through unsustainable spending cuts or higher taxes”. It is necessary, they write Dragons and Macron, “more room to maneuver for make the necessary investments to support growth and guarantee the welfare of the new generations and the rules of the Stability Pact must not prevent us from doing so “.
Even before the health emergency “the European tax rules they needed to be reformed, because they are obscure and too complex “, underline the two leader. The strategy to be put in place must be joint and must follow a legal framework “credible, transparent and capable of contributing to the ambition of building a stronger Europe, sustainable and fair “, conclude the Italian premier and the president of the Elysée in the double-signed letter on Financial Times.
From the City that adjective joint Reiterated several times, a straight and precise jab to the new chancellor appears Olaf Scholz that only a few days ago in Rome he had the opportunity to freeze the former ECB number one right on the rules of Stability pact.
Scholz, in the wake of a mindset Liberal, he reiterated in fact that “the rules we have already have their flexibility, on their basis we can also work in the future”. “We have already shown what we can do with the Next Generation Eu. We have found a common response to the pandemic crisis ” Pact it is therefore already flexible. The German liberal hawks on community rules remain uncompromising, and this Mario Draghi and Emmanule Macron they know it well.
The joint method, already implemented by the former premier Giuseppe Conte in the midst of the first pandemic wave, when he rallied France, Spain and Portugal in order to formulate a common response to the health crisis, he eventually found the support of the former German chancellor Angela Merkel. But not the hawks of the North, like Holland, proud opponents.
Now, the virus he shuffled the cards again. The Pact must be reviewed, according to Italy and France. The axis Draghi-Macron, strengthened only twenty days ago at the Colle with the Treaty of the Quirinale, is trying to pave the way towards the construction of a “stronger Europe”, with the ambition of rewriting those economic rules so dear to the German neighbors.
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