Rehn: I trust that Italy will stay committed to the Stability Pact

According to the EU Commissioner, it is in the interest of the country to focus on “reduce government debt.” The challenge is “a new dynamism in economy for unleashing growth potential and creating jobs.”

Even the new Italian government, which Matteo Renzi is set to lead, “will continue to stay committed to the European treaties, and that covers also the Stability and Growth Pact,” said Olli Rehn, EU Commissioner for Economic and Monetary Affairs, during the remarks after an informal Eurogroup meeting. Among other issues, the 3-percent-rule, which Mr Renzi has previously dismissed as “outdated” and that was the focus of a side bilateral meeting between the incumbent Italian Minister of Economy Fabrizio Saccomanni, and Commissioner Rehn.

“I’m confident that the new government will aim at tackling the problems of economic competitiveness of Italy, high level of public debt and I trust that the government will continue to pursue economic reforms and maintain a consistent line in fiscal consolidation,” said Rehn.

According to Commissioner Rehn, “piling new debt on top of this old debt does not seem to improve the economic competitiveness of Italy,” hence the main issue is “stabilizing government debt and at some time starting to decrease it.”

Finally, “The most important step now is to unleash the formidable growth potential” of Italy, he added, citing market liberalization and competitive innovation as key to growth and jobs. “This is the real challenge for any government in Italy, present and future,” given that every Member State, not only Italy, is has to respect the Growth and Stability Pact.