In the end, the definitive green light for the new project arrived from the EU Council Stability pact. The text was approved by the meeting of European Agriculture Ministers, with final approval also given to the text in which unanimity was required. As we know, the reform proposal is made up of three legislative acts: the regulation establishing the so-called preventive arm of the Pact, the regulation modifying the corrective arm and the directive modifying the requirements for the budgetary frameworks of the Member States. New rules are the result of a compromise but nevertheless capable of displeasing everyone, if not the frugal countries.
A few days ago the green light arrived from the European Parliament with a decidedly skeptical Italy: all the parties abstained or voted against (the 5 Star Movement). Only three MEPs who voted in favor: Lara Comi and Herbert Dorfmann of the EPP, the independent Marco Zullo (Renew). The text has certainly been improved compared to the initial proposal – also thanks to the work of the Italian government – but not enough. THE critical points they are inextricably linked to the claims of the aforementioned frugal countries. An example above all: the safeguarding of debt sustainability which will entail less flexibility than expected in the coming years.
The new rules they will apply starting from the 2025 budget year and for the countries under the procedure an annual cut in the structural balance of at least 0.5 percent of GDP is expected. For Italy we are talking about a figure of 10 billion euros. The long and tortuous negotiations therefore saw the rigorists prevail, Germany in the lead, strongly opposed to a more gradualist approach in the name of flexibility. The old parameters remain set at 3 percent for the deficit and 60 percent for the debt. It is also reiterated that fiscal discipline can only be a key element on which to base recovery paths in public finances, on the same level as safeguarding debt sustainability. Furthermore, the Stability Pact does not provide, as requested by the Meloni government, any golden rule to exclude certain categories of investments from the calculation of the deficit.
A compromise that dissatisfies everyone, but a little less Berlin and its allies. Italy can say it is at least satisfied with the elements of flexibility included in the text, but no one can certainly claim victory. On the contrary.
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