This is good news: despite inflation, the geopolitical situation and the energy issue, growth in the Eurozone should continue.
“I think inflation peaked at the end of last year. It will come down gradually, not suddenly. So let’s keep up our efforts on energy consumption and move forward with the reform of the European energy market, which the Commission will present in the next few weeks”. ” he continues.
The time to act against the slippage of public finances
This measured optimism runs up against some important risks, however, such as the collapse of public finances in some countries such as France.
“We are all aware that the European countries have had in these two successive crises, the pandemic then the war and energy, a lot of public spending. The problem is not what the countries have done up to now, because it was totally necessary. The problem is what we are going to do in the future. In France, Bruno Le Maire (the Finance Minister, editor’s note) is in the process of launching a public spending review. And all European countries must move to support measures for households in the face of energy prices. It is easy to say, but more difficult to do”, acknowledges the commissioner.
And stress that now is the time to act.
“Because in the first half of the year, many of these measures will evolve or end. It was just to have universal measures after the pandemic, now it is less justified. And today we have a chance, because energy prices are again lower than before the war. General support measures place an excessive burden on our public finances.”
Pension reform: “It is not up to Brussels to discuss the different aspects”
“Indeed, one of the objectives of this reform is the sustainability of the pension system and public finances, in the medium and long term. This is a problem that we obviously share in Brussels, but it is not up to us to discuss the different aspects of this reform”, explains Paolo Gentiloni.
And he continues: “To compare with another large European country, Spain has put the pension reform in its recovery plan. And we talk to them every week, because they have to respect objectives and points of In France, there is only a visible political commitment -à-vis Brussels, and the content of the reform belongs to the Government, and now to Parliament”.
Source: BFM TV
