Italy’s economy minister, Giancarlo Giorgetti, will not request an extension of the Stability Pact clause suspension but is hopeful reforms will be completed by the end of the year to resume in 2024.

Giorgetti, deputy secretary of Matteo Salvini’s League (ID), spoke about the EU Stability and Growth Pact during the ‘Rimini Meeting’ on Monday, which imposes fiscal rules on countries within the European Union. However, it was temporarily suspended following the outbreak of the pandemic.

According to ministry sources, Giorgetti will not ask for an extension of the Stability Pact’s suspension, which is in force until 31 December this year. That said, he is confident the proposed reforms will be approved by the end of 2023 to supersede the old regulations from 1 January 2024, Euractiv reports.

“The European Commission, compared to a few years ago, has completely changed the paradigm concerning the general clause that has not been applied in recent years for the Stability and Growth Pact, but perhaps – I hope not – it will start again from 1 January 2024,” the minister stated.

Furthermore, Giorgetti said Prime Minister Giorgia Meloni’s government is calling for investments to take priority over current spending.

“This is the Italian negotiating position on which we stand: we are not making an issue of debt or lack of debt reduction, but we want investment to be treated preferentially and better than current expenditure,” the minister added.

“We cannot – at a time when we are still in an exceptional situation – go back to rules that ignore the need to accompany and help families and businesses in the transformation we are experiencing (…) I hope that in Europe – when we will decide on the new rules in September – this will be taken into account,” he continued.

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