The European Chamber gives the green light to the Stability Pact, only 4 Italians vote for it. Gentiloni: ‘A good compromise’ – European Parliament

Green light for the Stability Pact, Italy does not vote for it
The centre-right and the Democratic Party abstain. Gentiloni: ‘A good compromise’
A quick vote, with a majority that leaves no room for doubt but in which one notable absentee stands out: Italy. The new Stability and Growth Pact is at the very last mile before entering into force and has received the definitive green light from the EU Parliament in Strasbourg. The text changes the rules of the game in economic governance, maintaining on the one hand the parameters of 3 and 60% for the deficit and GDP but on the other granting more gradual repayment plans for high-debt countries.

For the Italian parties, however, the compromise reached last December 21st by the Economy Ministers of the 27 was not enough. Only 4 Italian MEPs voted in favor. The centre-right, as a bloc, abstained, as did the Democratic Party. The M5S and the Greens voted against. The Italians who voted for the key text of the Pact, the so-called preventive arm with the new budget parameters, were Herbert Dorfmann and Lara Comi of the EPP, Marco Zullo and Sandro Gozi of Renew. With the latter who, among the pews of the EP, sits in the ranks of the Macronians.

To know more ANSA Agency What the new Pact provides, 7 years to reduce debt and deficit – News – Ansa.it Stakes on public accounts, with exceptions and transitional rules (ANSA)

Economy Minister Giancarlo Giorgetti, who in December had given his approval to the very laborious agreement reached following the Franco-German push, had been warned of the majority’s position. But of course, after the Pact on Migration and Asylum, the centre-right parties have once again written down their differences with respect to the position of the executive. “The government forces have disheartened Giorgetti”, was the attack of the M5S, with Giuseppe Conte throwing down the gauntlet to the prime minister: “The bronze faces award goes to Meloni and his associates. In the election campaign they were ‘the patriots ‘, the government has given the OK to this agreement which damages Italy”, attacked the former prime minister. “The abstention of the centre-right is sensational, the government has been disavowed”, urged the head of the Dem delegation Brando Benifei. “We have united Italian politics”, joked the Commissioner for Economic Affairs Paolo Gentiloni while Carlo Calenda observed: “It should have been voted after the European elections”.

The new rules are called for final ratification on April 29, at the meeting of Agriculture Ministers. And if no one opposes it, they will be a reality. “The new Pact is not perfect but it is a good compromise”, Gentiloni explained in the Chamber, seeing the glass half full for Italy: “It has a double challenge, that of prudent budget policies and that of continuing with public investments that help growth. And with the current rules this challenge would perhaps be very, very difficult to implement.” In fact, the new Pact seeks to maintain rigid parameters for the return from debt and deficit, introduces the anti-crisis threshold of 1.5% of GDP on the deficit but grants something to countries such as Italy, Belgium, Greece, France or Spain, which have high debts. Governments will be able to agree with Brussels on a recovery plan ranging from 4 to 7 years in exchange for the implementation of reforms for growth and sustainable accounts.

The annual debt cut, for those above the 90% of GDP threshold, remains 1% per year. On the deficit, countries that exceed 3% are called upon to reduce it by 0.5% per year but with a transitional period that extends until 2027 and in which the percentage can be reduced. However, the yes to the Pact, after the Covid crisis and the outbreak of the war in Ukraine, brings the EU back to a situation of normality. And for Italy it is not good news. The EU will decide on deficit procedures on 19 June. “Looking at the Eurostat data we can have a preview of the potential decision”, explained Gentiloni, underlining, however, that this decision will only be taken in June. That is, after the European Championships. Italy, with 7.4% of the deficit just certified by Eurostat, is at very high risk. “The country continues to face vulnerabilities linked to debt, deficit and productivity growth”, we read in the conclusions of the in-depth reviews of the EU Commission on the macroeconomic imbalances of the 27.

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