ROME: Following his first face-to-face meeting with incoming German Chancellor Olaf Scholz, Italian Prime Minister Mario Draghi said the two countries are likely to align their views on the European Union's (EU) budgetary laws.
According to sources, the two countries have long had opposing viewpoints on the EU's budget and public debt guidelines (i.e., how member states should manage their public spending), with Italy taking a more flexible approach and Germany taking a tougher one.
However, in the post-Covid phase -- particularly in light of the 750 billion euro (USD846 billion) "Next Generation EU" recovery tool -- the Italian Prime Minister stated that the bloc needs to continue its integration process and reach an agreement on the Stability and Growth Pact's criteria.
When the European Union initiated a review of this accord in October, Draghi and Scholz "briefly addressed" the adjustments that would be required to align it with the bloc's new goals. "All of our countries are obliged to fund unprecedented projects in the sectors of digital transformation, environmental transition, defence, and also in terms of cooperation in the post-pandemic phase," Draghi said during a joint press conference after their meeting on Monday. "These are enormous projects," he added, "and it will be vital to evaluate how they can be incorporated within the new budget regulations."
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