Democratic Party (PD) leader Matteo
Renzi has proposed scrapping the Fiscal Compact and having new
EU budget laws that allow deficits of up to 3% of gross domestic
product (GDP).
"In my book I make a proposal, let's bring down debt but
return to Maastricht and a deficit (limit) of 3% to give oxygen
to the economy," ex-premier Renzi told RAI television referring
to a new book he has written ahead of a general election that
will be held early in 2018 at the latest.
"Let's scrap the Fiscal Pact and bring down taxes for
families with children, artisans and small businesses and those
who cannot get by.
"It is not just a PD idea, but one for all the parties to
take to Europe - in other countries they go into Europe
together.
"The other parties should accept this proposal, because it's
not the PD that needs lower taxes, the country does".
The European Commission on Monday gave no official comment
on Renzi's proposal, which would allow the deficit-to-GDP ratio
to climb to 2.9% for five years.
"(European Commission President Jean-Claude) Juncker has a
very good relationship with (Italian) Premier (Paolo)
Gentiloni," a spokesperson for Juncker said.
"The relevant Commissioners have a very good relationship
with (Economy) Minister (Pier Carlo) Padoan.
"The European Commission does not comment on the comments of
people outside this circle".
But Eurogroup head Jeroen Dijsselbloem rejected Renzi's
notion.
He said running a 2.9% deficit for five years would be
"outside the budget rules" and was "not a decision that a
country can take on its own".
The Dutch finance minister stressed "we are together in this
monetary union".
Dijsselbloem added: "I'm always open to making the rules more
efficient, effective, but we can't unilaterally say the rules
don't suit me this year and the next five".
And European Economic Affairs Commissioner Pierre Moscovici
also rejected Renzi's proposal, saying "we need an Italy at the
centre of the eurozone which respects the rules which are
intelligent and applied in an intelligent and flexible way in
its case".
He said "Italy is really the country that cannot complain
about the Commission's observations, being the only country
which has benefited from all the flexibility of the (Stability)
Pact: investments, reforms, earthquakes".
Renzi retorted that the European Commission will have to say
Yes to a return to Maastricht budget criteria and urged the EC
to think more about meeting its commitment to get member States
to help Italy on the migrant emergency.
"Is it possible that Europe should tell us what to do and
then isn't able to maintain commitments on (migrant)
relocation?," he said.
"I have great respect, but they too should start to get
member States to respect their commitments", he said.
Renzi also said his idea would be one for the next
legislature following a general election expected next spring.
He said "we'll develop it in the next legislature, we can't
give (Economy Minister) Pier Carlo Padoan and (Premier) Paolo
Gentiloni this responsibility".
Padoan also said Renzi's proposal is an issue "for the next
legislature", when asked if the government might consider
putting it into next year's budget.
Renzi made the proposal in his new book, Avanti (Forward).
There had been speculation he had it in time to be a vote
winner in the next general election.
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