The new telephone contact took place this morning between the new finance minister Daniel Franco and Eurogroup president Irishman Pascal Donohue. However, in the afternoon, a video conference with other finance ministers of the eurozone also marked the inauguration of Estonia’s new minister, Cape Pentus-Rosimanus.
Franco was very active in making significant contributions to the discussions we had, and at the end of Eurogroup Donoho he said: I am aware of the challenges facing the Eurozone and Italy, and he and the Government will work tirelessly to respond to these challenges. The presentation of the programmatic lines of the Italian government on economic policy was postponed to a meeting scheduled for March as Franco and Donoh agreed. After all, Finance Commissioner Paulo Gentiloni observed that the Italian Parliament expects a vote of confidence in the coming days. However, there is hope for a new Italian trend in Europe, as can be seen from the words of German Finance Minister Olaf Scholes outside the Eurogroup: Mario Draghi represents very intelligent policies and the real Europeans. For Moody’s, long-term reforms remain a challenge, but Italy’s expectations are improving with Draghi.
Get out of the emergency
Eurozone finance ministers discussed the financial crisis caused by the pandemic and highlighted the uncertainty that still exists due to virus variants, despite the presence of anti-Kovid vaccines that represent a light at the end of the tunnel. Michael Ryan and Bruce Eilward of the World Health Organization explained the contagious condition. It was also an opportunity to discuss how and when to move from urgent business support measures to more specific and targeted actions, which distinguish between nonprofit businesses and profitable businesses in need of support. Separation is not easy – underlined gentiloni – but then it is important to facilitate sustainable growth. For the Eurogroup, caution and gradual decision-making are still needed, and financial support policies should not be withdrawn immediately. This situation is on the rise, according to a commission published last Thursday (Italy’s GDP will not return to 2019 levels by 2022). Gentiloni noted that the next generation, which is expected to give the European Union an overall increase of up to 2% in the years of operation of the Recovery and Resilience Facility, does not take into account forecasts affecting the GDP of the euro. The first deliveries may arrive before the summer break, but that is a challenge.
In the coming months, the EU will have to make prudent choices in monetary policy, Gentiloni explained, and ask itself what will happen in 2022 and whether it will be sustained. General Escape Close Whether or not the terms of the Stability Agreement suspend it. Member states urgently need guidance on this front – he explained – and they will begin preparing budgets for 2022 and planning for a medium budget. The decision on the deal follows the Spring forecasts published in May and early March, and the Commission will provide guidance on how it intends to approach this year’s Spring Economic Policy Package. The recommendations include a preliminary tax guide for the upcoming period and the parameters we are looking to determine General Escape Close.