Matteo Renzi won’t be very happy. According to the latest draft conclusions of the European Council, refined last night, we can find not only the acknowledgement of the need to boost growth and employment, but also the reiteration of a concept: there is no room for further softening of rules, given that ‘measures of flexibility’ are already contained in the Pact. Furthermore, the urgent need of structural reforms is highlighted in paragraph perfectly suitable for Italy: the need of reducing tax wedge, reforming public authorities, easing the access to funding, reforming the education system are all listed there.
“Thanks to the efforts of the Member States, the correction of macroeconomic imbalances has progressed and public finances continue to improve,” reads the draft, “The possibilities offered by the EU’s existing fiscal framework to balance fiscal discipline with the need to support growth should be used.” Still, “given the persistently high debt and unemployment levels and the low nominal GDP growth, as well as the challenges of an ageing society and of supporting job-creation, particularly for the young, fiscal consolidation must continue in a growth-friendly and differentiated manner.”
According to EU leaders, “Structural reforms that enhance growth and improve fiscal sustainability should be given particular attention, including through an appropriate assessment of fiscal measures and structural reforms, while making best use of the flexibility that is built into the existing Stability and Growth Pact rules.”
Moreover, “The recovery remains fragile and uneven and efforts to implement growth-enhancing structural reforms must continue and be enhanced in order to strengthen Europe’s capacity to grow and create more and better jobs. Increased action is needed to reduce the tax wedge on labour, to reform product and services markets and public administrations, to improve the business and research&development environment, facilitate access to finance, to enhance the functioning of network industries and to reform education systems.”
download the Draft Conclusions of the 27 June European Council of the 27 June European Council
