Brussels – Germany is ready to go into debt to support the defense industry. European Commission spokesman Balazs Ujvari confirms that notification has been received from the German government to suspend the internal stability pact. It is one of the possibilities the Commission outlined in its White Paper on Defense to revive heavy industry and production. Germany is the first EU member state to make its intention to increase public spending on rearmament and defense policies official, and it may not be the only one.
“We are in contact with all countries, and we expect more requests to come in the next few days,” says the spokesman responsible for budgetary matters, without commenting on or going into detail. Portugal seems intent to follow in German footsteps, but nothing is official.
The deadline for submitting requests for relaxation of public spending rules remains April 30; however, the date is not binding. Member states remain free to apply whenever they want since, from a legal point of view, this is what the regulations provide, especially since it is not the European stability pact but the internal stability pact. The Commission preferred this route precisely because it is easier from a legal point of view: suspension of EU rules is justified only by severe economic crisis, and this is not the case. Conversely, at the national level, an exceptional situation suffices.
The Commission would like the loosening of rules on public spending to occur in a coordinated and homogeneous manner, basically all together at the same time rather than randomly, which is why it attaches great importance to the April 30 deadline. However, “if requests for suspension were to arrive two or three days later, it would certainly not be the end of the world,” and in Brussels, “they will be considered,” Ujvari admitted.
However, the political indication is to stay focused on the common timetable and pay attention to the debt trajectory, which must be “under control and, even better, on a downward trajectory,” the EU Commission spokesman noted. He warns high-public debt countries such as Italy: the European Semester, the process of coordinating member states’ economic policies, however, will guide the Commission in its decisions.
Meanwhile, the 5 Star Movement takes up arms. Pasquale Tridico, head of delegation in the European Parliament, attacks: “Germany’s rearmament rekindles memories of horrors and destruction that were never forgotten, and it is clear that it represents a defeat for the European Union that was born from the ashes of World War II to restore peace and security to our continent.” Berlin’s communication, he continued, implies that “with increased spending capacity, Germany will increase its fiscal stimulus, improve the competitiveness of its companies and export volumes to the detriment of those European economies that, on the other hand, due to high debt, cannot afford to take this path.” In short, bad news for Italy.
English version by the Translation Service of Withub
