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EU, Stability Pact remains suspended but for Italy still imbalances

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(ANSA) – BRUSSELS, MAY 23 – The European Commission believes that a new stop of the Stability and Growth Pact for the whole of 2023 is justified. “The increased uncertainty and the strong downside risks to the economic prospects in the context of the war in Ukraine, unprecedented increases in energy prices and the continuing disruption of the supply chain justify the extension of the general safeguard clause “which suspends the obligations of the Pact” in 2023 “, reads the recommendations of the spring package of the European semester. The clause will be deactivated “from 2024”.

As clarified by the vice president of the Commission, Valdis Dombrovskis, the suspension does not mean “a free all” anyway. For this reason, the EU in any case sends its notices to member countries, starting with Italy. According to Brussels, “the ratio of public debt to GDP began to decline in 2021 and is expected to decline further, but a risk to fiscal sustainability, the financial sector and economic growth remains”. “Italy – the Commission reiterates – is experiencing excessive imbalances. The vulnerabilities concern the high public debt and weak productivity growth, in a context of fragility of the labor market and some weaknesses of the financial markets, which have cross-border relevance” .

(HANDLE).

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Source: Ansa

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