Today, in the first meeting after the summer break, the Eurogroup "reconfirmed its commitment to reduce the tax burden on labour". This is what we read in the Eurogroup press release released at the end of this morning's meeting, which was held in Milan.
PADOAN AND RENZI: ITALY WILL RESPECT THE 3% DEFICIT
Even before the meeting began, Treasury Minister Padoan had reiterated that "Italy will respect the commitments made with Europe on the budget deficit", even if the previous estimates of 2,6% for 2014 referred to a different economic picture. Matteo Renzi echoed him: “We respect 3%. We are among the few to do so. So we don't expect lessons from Europe, but 300 billion of investments”, wrote the Premier on Twitter.
DIJSSELBLOEM: TAX WEDGE AMONG MAJOR REFORMS
“Reducing the tax wedge is one of the main reforms that will make our economies more competitive – stated the president of the Eurogroup, Jeroen Dijsselbloem -. At this critical moment, the Eurozone's problems can only be solved with structural reforms aimed at creating more jobs and growth. To do this requires an effort that requires time, political courage and perseverance. Everyone has to play his part, to have the right mix of policies. And the right mix concerns monetary policy, and that's thanks to the ECB, and structural reforms. Everyone must align themselves with the rules of the Pact, regarding both the tax and investment aspects”.
SCHAEUBLE: "INVESTMENTS NEEDED, EVEN IN GERMANY"
Even the German Finance Minister, the strict Wolfgang Schaeuble, admitted that “we are in a macro situation that requires a strengthening of investments everywhere in Europe, including in Germany, naturally in compliance with the budgetary rules. We also need structural reforms and an improvement in the regulatory framework, all of this creates lasting growth and employment".
KATAINEN: "TAX POLICY IS NOT ENOUGH, MORE REFORMS ARE NEEDED"
Another hawk, Jyrki Katainen, outgoing EU commissioner for economic affairs and future Commission vice-president, wrote on Twitter that “growth needs both better demand and better supply. More accommodating fiscal policies cannot help without reforms for better competitiveness”.
DRAGHI: "FRAGILE AND UNHOMOGENEOUS RECOVERY, BUT CONTINUES"
The Eurogroup meeting was also attended by Mario Draghi, president of the ECB, who at the end of the meeting took stock of the economic situation: "We observed that the second quarter witnessed a stagnation in growth after three quarters of recovery - he recalled the central banker -. We continue to believe that the recovery will continue, albeit at a modest pace. It is fragile and uneven, but in our opinion it is continuing”. The Stability and Growth Pact has been “the anchor of confidence in the Eurozone”, concluded Draghi.
