Brussels, 29/01/2014 (Agence Europe) - Talks between the European Commission and the Italian prime minister, Enrico Letta, and five of his leading ministers in Brussels on Wednesday 29 January focussed on the Italian Presidency of the EU in the second half of 2014 and the economic situation in Italy and the wider Europe.
The Italian Presidency will be both crucial and difficult because it will occur at a key moment of time, said Letta and José Manuel Barroso at a joint press conference. The EU will be introducing decisive reforms for its future (banking union, the single resolution mechanism, budget reforms, growth and industry stimulus and the fight against unemployment and in particular youth unemployment) at the same time as a new European Parliament (after the European elections) and a new European Commission get to work (the latter in November). In parallel, on the global stage, it will be dealing with issues like the free-trade negotiations with the United States (TTIP) and preparing for the UN climate conference in 2015, where the EU plays a leading role on the world stage. Barroso said that the way Italy manages things will be decisive because the work in progress in Europe must continue. Referring to these points, Letta stressed the Italian government's commitment to put fighting unemployment, especially youth unemployment, first in Europe, and there will be a summit of EU heads of state on the question in July. To this end, the Italian Presidency will focus on economic recovery. Another high point of the Presidency will be the European summit in October, which will focus on governance in the eurozone. Letta said Italy would facilitate talks on a trade deal between the EU and the United States and would back the ongoing work on the climate and energy package for 2030, which will be discussed by EU heads of state in March 2014.
As regards the Italian situation, Barroso welcomed the progress made by Italy, which has rebalanced its public accounts, but which has still to reduce its public debt and launch internal growth with appropriate structural reforms, stating that Europe will support Italy to the tune of €30 billion in structural investment funds over the period 2014-2020.
Letta said that, with a deficit of 2.25% this year, Italy has halted the growth of its debt, which is expected to start to fall. On the growth front, he is aiming for 1% this year and 2% next, focusing on subsequent privatisation operations and further structural reforms, such as the reform of the employment market. A pre-requisite for these reforms will be the revision of the electoral law and the abolition of the two-chamber system, which is expected to give the country a stable majority, a gauge of stability for the markets, and to keep interest rates on borrowing at acceptable levels. (FG/transl.fl)