"I have not seen any controversy with German politicians: the statement from the Berlin government spokesman confirms what we know very well, and that is that there is no controversy with the German government on the management of flexibility and stability". With these words, Prime Minister Matteo Renzi, at the end of this morning's meeting with Josè Manuel Barroso at Villa Madama, dismissed the international tensions that arose after a tough intervention against Italy by Jens Weidmann, president of the German Central Bank. On the case they were already attended in the morning the number one of the Treasury, Pier Carlo Padoan, and the foreign minister, Federica Mogherini, both to ensure that there is no crisis between Rome and Berlin.
“We believe that together we must share the rules that we have given ourselves – added Renzi -. In Europe there is a pact for stability and growth, not just stability. I won the elections saying that the problem is not Germany, but Italy, and that we have to make reforms at home. But in Europe the rules must concern stability and growth. If we only talk about stability we destroy the future”.
In any case, the Premier guaranteed that "the relationship with Chancellor Merkel, despite the controversies I've read in the newspapers, is excellent". As for Weidmann's words (“Renzi now tells us what to do, but more debt is not the prerequisite for growth”), according to the Prime Minister “the task of the Bundesbank is not to participate in the Italian political debate. I respect the work of the German central bank, when it wants to talk to us it is welcome, but the assumption is that Europe belongs to the citizens and not to bankers, neither German nor Italian”.
The controversy stems from Renzi's request for greater flexibility in the application of European budget rules. The Fiscal Compact, however, is not questioned and the 3% deficit ceiling remains an insurmountable limit for everyone (including Italy). “The rules of the Stability and Growth Pact must be 100% respected, the Treaty also says so – Barroso recalled today in Rome -. The rules are there and in our view they allow for some margins of flexibility. No prime minister has asked for the rules to be changed."
On the table there is rather the hypothesis of separating investments in support of projects co-financed with the European Union from the calculation of the deficit. A path contemplated by the Stability Pact itself (it was also suggested two years ago by former premier Mario Monti), which would guarantee resources for growth to all EU countries, including Germany. Therefore, it has nothing to do with exceeding the deficit ceiling: in that case, the possibility of exceeding 3% is envisaged by the Maastricht Treaty, but only for individual countries and under certain conditions. It was granted more than 10 years ago to Germany and France.
“Flexibility is not a request from Italy – concluded Renzi -. Flexibility is needed by Europe, not by Italy. Italy needs the reform process we have started”.
