MNI BRIEF: Talks Intensify Seeking EU Fiscal Deal

European Union officials will engage in intensive shuttle diplomacy next week to seek a deal on overhauling the bloc’s fiscal rules in time for a finance ministers’ meeting on Dec 8 after proposals by rotating presidency holders Spain for an additional meeting later this month proved too difficult to organise, officials told MNI. (See MNI: Hopes Rise In Dash For EU Fiscal Rule Deal By Year End)

Italian Finance Minister Giancarlo Giorgetti will visit France on Tuesday and Berlin on Wednesday as he tries to persuade Germany to water down demands for minimum automatic safeguards to ensure states reduce budget deficits year-on-year. Italy also wants more favourable fiscal treatment for investment.

Negotiations are also focusing on putting hard numbers on Spain's latest compromise proposal which would allow high-debt countries to extend fiscal consolidation paths from four to seven years without having to propose new reforms and investments in addition to those already being carried out under the NextGenerationEU programme.

While Germany has proposed a 0.5% a year reduction in deficit-to-GDP ratios of countries at over 3%, Italy and France are seeking significantly lower figures. EU financial counsellors will work in parallel to talks between ministers on Nov 21-22 and Nov 24 to start drafting a legislative text.