The Eurogroup committed to reforms to exit stagnation – Finanzas.com

The Eurogroup committed to reforms to exit stagnation – Finanzas.com

The finance ministers of the eurozone have returned to rule Friday relax fiscal discipline, as claimed Italy and France, and have chosen to accelerate structural reforms as a way out of the economic slowdown and complement the efforts of the European Central Bank (ECB) to revive growth.

“There is broad consensus that the Stability Pact and growth serves as an anchor of trust in the EU,” he said Eurogroup Chairman Jeroen Dijsselbloem, following the informal meeting in Milan. All ministers agree, has continued, that “the credibility of the Covenant we recovered thanks to hard work during the crisis should be preserved.”

“So we have all agreed that we must follow the rules. The consolidation strategy compatible with the growth should continue and any form of flexibility must be within the current rules, “stressed the Dutch.

also the Commissioner for Economic Affairs, Jyrki Katainen, noted that” application flexibility should not in any way undermine our fiscal framework. ” “When money is tight, there is no option to save,” said Katainen, who has committed to cut spending rather than raise taxes and not cut current spending and investment.

“No has questioned the Stability Pact and fiscal rules, “insisted the Economy Minister Luis de Guindos.

Even the president of the European Central Bank (ECB), Mario Draghi, whose words at the meeting of central bankers in Jackson Hole this summer were interpreted as a call to fiscal stimulus in the euro zone, has insisted that “the PEC has acted as an anchor of trust” and has asked not to backtrack on fiscal consolidation in recent years.

Draghi repeated that the recovery is “fragile, uneven and weak” , has been willing to take more monetary stimulus measures “if necessary” and has claimed to Eurozone governments to accelerate structural reforms. “To recover the investment, we need more ambitious structural reforms,” ​​stated the Italian banker.

“Independent of monetary stimulus and even tax that is decided, these measures alone will not generate much growth if there accompanied by serious structural reforms, “Draghi has warned.

For Guindos, the Spanish example shows that” when there are structural reforms, the channels of transmission of monetary impulses and tax work much better. “

“We must accelerate the implementation of our ambitious agenda of structural reforms to improve the competitiveness of our economies and boost growth and employment”, coincided Dijsselbloem. “We can not rely solely on monetary policy,” he noted.

For Katainen, “without genuine reforms, applied effectively, we will not have sustainable growth and job creation.” “No country is immune to the need for reform,” stressed the Finnish commissioner.

During the Eurogroup meeting has not been addressed in detail the situation in France, which has said it will need two additional years to correct its excessive deficit. However, the Commissioner for Economic Affairs has warned that this extension for two conditions are necessary: ​​first, unforeseen worsening of the economic situation; and the country has implemented effective measures to reduce the deficit. The French Minister Michel Sapin, has intervened to make it clear, according Guindos, who “is not asking for absolutely no exceptional treatment but apply the rules we currently have in place.”

Katainen has advanced to Eurogroup how are the preparations of the investment plan of 300,000 million promised by President-designate of the Commission, Jean-Claude Juncker.