Eurogroup to Italy: “Against the deficit need additional measures … – The Messenger

European sources indicate that the Eurogroup meeting on the budgets in 2015 will not be in any case “quiet.” The President of the Dutch Jeroen Dijsselbloem explicitly reiterated that Italy and France should consider further measures, that the Stability Pact remains the main compass for the Eurogroup. The negotiations went on for several days, and now the ball is on the table of the Eurogroup of finance ministers: this morning will be issued the political judgment on the proposed 2015 budget of 16 Eurozone countries.

Not satisfied. Dissatisfaction concerns over the French and Italy that you recognize the credit for having set a battery of reforms that inevitably will bear fruit in the medium term. France however is far behind on structural reforms, is on the brink of sanctions under the excessive deficit procedure. As for Belgium, the general opinion is that the effort of the new government is substantial.

Spring at risk. The game moves to March: for Italy could cover a few decimals of a percentage point (0.2-0.3% of GDP, equivalent to 3-5 billion euro) as long as everything else functions . But Italy has a huge problem on the public debt and will discuss how to March will be considered the various clauses to take account of ‘exceptional circumstances’ that may allow flexibility in the decline of the debt. At stake is the credibility of the rules and the equitable Eurozone.

Slalom on public accounts. For now the picture holds and there are no signs that the slalom on public accounts to give time to the countries that objectively they face enormous economic and political difficulties have a negative impact on spreads.

 December 8, 2014 14:28 – Last Updated: 16:58

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