European Union Commissioner for Economy Paolo Gentiloni said he was confident an agreement over re-implementing EU budget rules would be reached by year-end, ruling out an extension of their suspension into 2024.
Gentiloni spoke on Saturday. He was referring to the EU Stability and Growth Pact, which has been on hold since 2020 to help EU governments deal with the COVID-19 pandemic and the impact of Russia’s February 2022 invasion of Ukraine on energy and food prices.
Last week Italian Economy Minister Giancarlo Giorgetti, who said a deal was probably out of reach by the end-2023 deadline. Gentiloni’s comments contradict this. While he says he is confident …. this doesn’t sound confident:
- “I’m confident, I’d say I have to be confident, that a deal (over the new budget rules) can be reached by year-end,”
- “Suspension won’t be extended to 2024,”
- Said that failure to reach a deal on reviving the rules would mean a return to previous budget rules that did not help promote economic growth and cut sovereign debt in the bloc.