Italy Fin Min-We Won't Back Budget Rules We Can't Meet

Italian Finance Minister Giancarlo Giorgetti has been speaking to the joint budget committees of the Chamber of Deputies and Senate ahead of the 8 Dec ECOFIN meeting of EU finance ministers that is set to seek an agreement on new fiscal rules. In line with our Policy Team's reporting, which has highlighted the difficulties in securing an agreement (see "Talks Turn Tough Ahead Of Dec 8 EU Fiscal Rules Meeting", 4 Dec), the minister spelt out the difficulties the Union faces in reaching an agreement, stating that the Italian gov't would not agree to fiscal rules that it cannot abide by.

• Giorgetti: “On deficit and debt, the answer is seriousness: it means making commitments that can be kept. Faced with challenging rules we can somehow access it, but with respect to rules that are impossible to maintain, I don't believe out of seriousness we can say yes"
• Giorgetti: "We must not neglect to remember that the consolidation needs should be compatible with the intention of promoting sustainable and long-lasting growth of the economy, which could be hindered by excessive constraints and too stringent rules [...] the government is willing to seek a solution, but it must not translate into an excessively complex and potentially contradictory system. Italy intends to reduce the debt in a realistic, gradual and sustainable manner over time, in a structure that protects and incentivises investments. In conclusion, I believe that fiscal and budget rules are not the end but the means".