[Rome 20th Reuters]-Italy's former Prime Minister Paolo Gentiloni, who has been appointed as the next economic and financial officer at the European Commission of the European Union (EU), contributed to the Italian newspaper "Sole 24 Olé" The European Union (EU) relaxed fiscal discipline and indicated the need for a review of fiscal rules.
He argues that the EU's financial rules should be followed, but that the rules need to be “reviewed and revised”. “A country that has a financial margin under less stringent fiscal policy is the time to use it,” he stressed.
As the EU economy slowed, he said, “The risks brought about by prolonged low growth should not be overlooked,” and he indicated that economic support should not be entrusted solely to monetary policy.
Mr. Gentiloni will play an important role in reviewing the Italian budget for 2020 after taking office on November 1 as the Commissioner for Economics and Finance.
The Italian budget proposal submitted to the European Commission last week raised the structural deficit to GDP ratio by 0.1% excluding the impact of the 2020 economic fluctuations. Until now, the target was a reduction of 0.6%.
European Commission Vice-Chair Don Brouskiss told Reuters that he would ask Italy for a clear explanation of the budget proposal.
It can be said that the Italian budget is neglecting the EU's fiscal rules, but the analyst says that the European Commission will take a more generous attitude towards the country in order to avoid conflict as it did during the pre-Italy administration. Expects.