Moscovici sees Italy as source of instability for Eurozone

Moscovici sees Italy as source of instability for Eurozone


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Italy’s acting Economy Minister, Pier Carlo Padoan, told the nation’s public news agency ANSA on Tuesday that the European Commission considers Italy “a source of uncertainty” in the Eurozone.

According to Padoan, Commissioner Pierre Moscovici said Italy had become a potential risk to the monetary union after the far-right League (formerly the Northern League) and anti-establishment 5-Star Movement and their mutual Eurosceptic platforms came out as the winners of Italy’s March 4 elections.

Padoan has been consulting with the European Commission Vice-President Valdis Dombrovskis, Moscovici, and Eurogroup President Mario Centeno about Italy’s long-term plans for fiscal consolidation. Brussels, however, will now wait for a new government to take shape in Rome before revisiting the issue of Italy’s deficit and the need to reduce the country’s huge public debt.

Italy’s debt-to-GDP ratio has started dropping, though all of the major parties in the country campaigned on a promise to renegotiate the EU’s fiscal compact with Rome.

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