- Title: EU's Gentiloni pledges to counter economic slowdown risks with fiscal efforts
- Date: 3rd October 2019
- Summary: BRUSSELS, BELGIUM (OCTOBER 2, 2019) (REUTERS) EXTERIOR OF EU PARLIAMENT EU PARLIAMENT LOGO
- Embargoed: 17th October 2019 09:47
- Keywords: budget deficit EU Parliament European Commission economic slowdown EU Paolo Gentiloni hearing Treaty Stability and Growth Pact public debt fiscal efforts
- Location: BRUSSELS, BELGIUM
- City: BRUSSELS, BELGIUM
- Country: Belgium
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA002AZJMEYV
- Aspect Ratio: 16:9
- Story Text:EDITORS PLEASE NOTE: ITALIAN TRANSLATION IN SHOT 14 PROVIDED BY OFFICIAL INTERPRETER
The nominee to become the European Union's next economic commissioner pledged "adequate" fiscal efforts on Thursday (October 3) to counter the risks of an economic slowdown in the bloc.
In his confirmation hearing before EU lawmakers, Italy's Paolo Gentiloni reiterated that he would seek to use the leeway allowed by EU fiscal rules to permit governments to invest for growth and would also target a reduction of public debt.
He said the Commission's recommendation would depend on the "seriousness and duration of the slowdown" which will emerge from the EU forecasts.
The bloc has currently a "broadly neutral" fiscal stance, despite pressure from some countries for more expansionary plans to counter recession risks. The European Central Bank also backs a more expansionary fiscal stance.
He also called for a review of EU fiscal rules that would make them simpler and urged an "ambitious" funding plan for an EU unemployment reinsurance scheme.
The bloc is currently debating whether to fund this scheme with loans or with more generous grants to states with high unemployment levels.
(Production Clement Rossignol) - Copyright Holder: REUTERS
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