Italian Prime Minister Matteo Renzi will spell out to the European Parliament his priorities for Italy’s six-month tenure of the EU presidency.
Emboldened by a strong showing in May’s EU elections, Renzi is pressing for a focus on growth rather than austerity and has even managed to get Germany to talk the talk.
At an EU summit last week, leaders accepted the need to allow member states extra time to consolidate their budgets as long as they pressed ahead with economic reforms. They pledged to make “best use” of the flexibility built into the bloc’s fiscal rule book – not, you will notice, countenancing any change in the rules.
As always in the EU, this will stand or fall on the attitude in Germany. We could get an early reading on that when German Finance Minister Wolfgang Schaeuble presents 2015-2018 budget plans. Berlin plans to refrain from any net new borrowing from 2015 for the first time since 1969 and will spend projected higher tax revenues on education and infrastructure.
It has come under pressure internationally to consume more as part of an effort to rebalance the world economy but has generally resisted although there are some signs of movement, such as the coalition government’s commitment to a generous national minimum wage and somewhat higher sectoral pay deals than in recent years.
After being held for questioning on Tuesday, former French President Nicolas Sarkozy has been placed under formal investigation on suspicions he tried to use his influence to thwart an investigation into his 2007 election campaign.