Brussels, 12/05/2014 (Agence Europe) - The Italian Presidency of the Council in the second half of 2014 will put economic governance of the eurozone on the agenda of the European Summit in October.
At a conference on the state of the European Union at the European Institute in Florence on Friday 9 May, the Italian prime minister, Matteo Renzi, said that at the European Summit in October, they would attempt to submit a mechanism that will provide major incentives for countries making the most incisive reforms.
Under the chairmanship of the president of the European Council, Herman Van Rompuy, Europe's leaders have been examining the question of boosting economic and monetary union (EMU) for the past two years. Germany is calling for the signing of Competitiveness Contracts at European level under which countries would pledge to carry out painful reforms to make their economies more competitive in return for financial aid.
The Italian government calls the Competitiveness Contracts “partnerships for reform, growth and competition,” and they would also have the aim of allowing greater flexibility on debt and deficit reduction for countries carrying out structural reforms, explains Italian secretary of state for European affairs, Sandro Gozi, in an interview with French newspaper Les Échos on Monday 12 May.
At the European Council last December, the member states failed to reach agreement on how these partnerships would work (see EUROPE 10989). One group of countries sees them as a way of tightening the surveillance of national policies whereas another group sees them as solidarity with countries that are applying reforms which initially have a negative social and economic impact. (MB)