At the end Renzi blurted out with Merkel: “We are not doing what you did in 2003”

Some tensions between Matteo Renzi and Angela Merkel during the dinner of Heads of State or Government in Ypres, when the Italian PM was denied the expected flexibility on public accounts, seen as necessary for targeted investments for recovery and employment relaunching.

Sources say Renzi commented: “We are not doing what Germany did in 2003, when they exceeded the thresholds of the Stability Pact,” during a ‘heated’ discussion he had with Merkel. After this, things settled down and the two leaders hugged each other goodbye, delegating their sherpas the exam of the possible flexibility contained into the current rules. The exam went on overnight, given that no one wants to breach the rules, even though Rome is calling for aid in case of implementation of structural reforms. Brussels gave its old good standard answer: sure, reform first, we want to see measures implemented.

Yesterday, dealing with Italy, there was a discussion on late payments by Public Authorities: an infringement procedure was opened in fact against Rome – still there was no consideration for the consequences of this into the Stability Pact.