EU, Gentiloni: “The revision of the Stability Pact? Discussion in the autumn”

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“We will reopen the discussion in the autumn” on the revision of the Stability and Growth Pact which is currently suspended. “I see two problems, in addition to those before Covid-19. And the first is that there is a huge demand for public and private investments. In the last 5 years in the euro area, net public investments have been almost zero. Added to this is the risk of a lack of private investment. On the other hand, we in Europe need trillions of investments, all the more so in view of the green and digital transition. We are talking more about growth tools than stability “. This was stated in an interview with Corriere della Sera, is the EU Commissioner for the Economy, Paolo Gentiloni.

“It is not a question of reviewing the objectives established by the treaties. But with a public debt on average at 103% of GDP in the euro area – underlines Gentiloni -, we need a discussion on how to return, the routes, times and why . If we were to just apply the rules as they are, with debt levels rising so much, then we would have to hold on to budget surpluses for 10 or 15 years before paying interest on the debt that would be hardly sustainable. We need to rethink how to manage debt. return paths. Obviously Italy or Greece have very high levels of public debt and must exercise particular caution. But France will also probably be above 120% of GDP for several years. I think we will have to deal with these realities “, adds the EU Commissioner.

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