“Minister Franco is a very important member of the Euro Group. His vision and his inputs to discussions on economic governance and the banking union are really valid and very influential.” Eurogroup President Pascal Donohou is on an official visit to Rome, Ireland. He is scheduled to meet with Prime Minister Mario Draghi, Finance Minister Daniel Franco and Capital Mayor Roberto Gouldieri today. He will meet with eurozone finance ministers in the coming weeks to understand the orientation of governments on issues at the center of the agenda: the recovery, the review of the stability agreement, the completion of the banking union and the digital euro.
What will be the macroeconomic status of the Eurozone in the coming months? Will energy, epidemics and inflation jeopardize recovery?
“I look forward to seeing continued and strong recovery in the Eurozone and Italy,” he said. I think Prime Minister Draghi and Minister Franco have done a great job of representing the causes of the Italian economy in the European Union, strengthening the general response on how to escape this epidemic. It is thanks to them that we have this confidence in the recovery fund. We can see that the recovery will continue to be strong in 2022. I am also aware of the challenges posed by inflation and the impact of energy prices on the cost of living in many countries in Europe, but we are seeing a faster job recovery and a faster recovery in consumption than we thought. There is also a recovery fund that will give an additional impetus to the EU’s growth when we need it in 2022.
Countries are divided on the review of the Stability Agreement. What might be an approach point? Will the fourth wave of Kovid, which requires more investment, push some countries to be more open?
“We have a recovery fund because we expect the fight with Kovid to continue. The Recovery Fund provides additional assistance needed for many savings. As for the compromise between the various positions regarding the review of the Stability Agreement, I now turn my attention to the members of the Eurogroup. It is too early to identify what the public sector for a contract is. However, although this is a challenging process I am sure we will find it and do everything possible.
What are the next steps in a deal by 2022?
‘It is too early to tell when the debate will end. We want to do it on time. But just as important is the quality of the discussion and reaching an agreement that can be defended. We will discuss these issues at least six times by the middle of next year. There is a great commitment. The Commission’s guidelines for the 2023 Budget Laws will be the first and foremost aid.
Will the obstacles to the theory of introducing a green gold law to unleash green deposits, as happened to Eurobonds, be overcome in the coming months?
“There are different perspectives on the need for a golden rule and how to define it. It is not my job to predict what the outcome of the discussion will be. I have to hear from Eurozone finance ministers. I will talk about this with Franco as well.
Italy has not yet ratified the ESM reform agreement. Are you afraid that there will be a delay in introducing backstop for the single resolution fund for banks?
“I am convinced that all the member states of the Eurozone can respect the commitment made last November. My visit to Rome is about future negotiations and future agreements, in which Italy will play an important role, and I have full confidence and confidence in the Italian Government’s commitment to revise the ESM Agreement. We worked very hard with the then finance minister, Gouldieri, last November to reach an agreement.
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