Latest news with #Giorgetti
AsiaOne
13 hours ago
- Business
- AsiaOne
Italy, pressed to boost defence spending, lashes at 'stupid' EU rules, World News
ROME — European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday (June 19). The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5 per cent of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than three per cent of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the Nato defence target of two per cent of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to five per cent of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the three per cent of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8 per cent of GDP in 2026 from 3.4 per cent last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB". Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members. [[nid:716943]]
Straits Times
21 hours ago
- Business
- Straits Times
Italy, pressed to boost defence spending, lashes out at ‘stupid' EU rules
Italy's Minister of Economy and Finance Giancarlo Giorgetti attends a press conference during the G7 Finance Ministers and Central Bank Governors' Meeting in Stresa, Italy May 24, 2024. REUTERS/Massimo Pinca/File Photo ROME - European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday. The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5% of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3% of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the NATO defence target of 2% of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to 5% of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the 3% of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8% of GDP in 2026 from 3.4% last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB." Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
a day ago
- Business
- The Star
Italy, pressed to boost defence spending, lashes at 'stupid' EU rules
Italy's Minister of Economy and Finance Giancarlo Giorgetti attends a press conference during the G7 Finance Ministers and Central Bank Governors' Meeting in Stresa, Italy May 24, 2024. REUTERS/Massimo Pinca/File Photo ROME (Reuters) -European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday. The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5% of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3% of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the NATO defence target of 2% of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to 5% of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the 3% of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8% of GDP in 2026 from 3.4% last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB." Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members. (Editing by Alvise Armellini and Gavin Jones)
Straits Times
a day ago
- Business
- Straits Times
Italy, pressed to boost defence spending, lashes at 'stupid' EU rules
Italy's Minister of Economy and Finance Giancarlo Giorgetti attends a press conference during the G7 Finance Ministers and Central Bank Governors' Meeting in Stresa, Italy May 24, 2024. REUTERS/Massimo Pinca/File Photo ROME - European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday. The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5% of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3% of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the NATO defence target of 2% of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to 5% of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the 3% of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8% of GDP in 2026 from 3.4% last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB." Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
2 days ago
- Business
- Yahoo
Italy's 'merciless' demographic crisis is a spur to action, economy minister says
By Giuseppe Fonte and Alvise Armellini ROME (Reuters) -Italy's ageing population and low birth rate are among the main challenges for the euro zone's third largest economy, Finance Minister Giancarlo Giorgetti said on Wednesday, highlighting the potential risks for the country's shaky public finances. Births in Italy, the EU's third most populous country with a total population of nearly 59 million, hit a record low of some 370,000 in 2024. The fertility rate has slumped to 1.18, below an EU average of 1.38 in 2023, and far below the 2.1 needed for a steady population. "Italy is ageing, birth rates are falling, entire areas of the country are emptying. These merciless numbers must become a spur to action," Giorgetti said, addressing a parliamentary committee on the demographic crisis. Giorgetti highlighted what Meloni's government has done since it took office in late 2022 to help women have children, including tax breaks to allow them to keep on working and he said Rome would continue to move along this path. He said the demographic trend would put "significant pressure" on pension, health and long-term care spending, with a smaller workforce supporting growing numbers of pensioners. "The greatest effects are expected in the first half of the 2040s, when the generations of so-called baby-boomers will have left the labour force." Pensions already eat up more than 15% of GDP in Italy, and the government expects spending to reach 17% of output in 2042. Italy's public debt, already the second-highest in the euro zone after Greece, is expected to rise to almost 137.6% of gross domestic product in 2026 from 135.3% last year, based on the government's latest projections, before edging down to 137.4% in 2027. Giorgetti also said a shrinking population and mild inflation trends had allowed Italy's per capita GDP, measured at purchasing power parity, to catch up with that of France and reduce the gap with Germany. "This is not a comforting figure, as it is certainly indicative of the ongoing demographic decline," the minister said. "But it can nevertheless be read in a favourable light, considering that more resources have been generated for each Italian in the face of a falling population."
