MNI BRIEF: Tough For Italy To Meet Fiscal Rules Without Tweak
Finance Minister says Rome won't meet reformed fiscal rules unless tweaks to investment plans allowed.
Complying with European debt reduction rules will be “mathematically impossible" for Italy if reform of the Stability and Growth Pact does not include some form of exclusion of green and digital investments from the overall deficit calculations, Italy’s finance minister Giancarlo Giorgetti said Tuesday.
Italy has cut back on larger-scale investments for coming years, said Giorgetti, noting that he is “confident” that an agreement on new fiscal rules will be reached by Christmas. “We will be able to reach an agreement in the end,” he added.
Asked if he was concerned that the European Commission's reaction to a likely increase in deficit target for 2023, Giorgetti said that was more worried of “the evaluations of the markets that buy my public debt”. (MNI: Italy To Raise 2023 Fiscal Deficit Target Close To 5% GDP)