05 November 2012

ECON Committee delegation to Italy

An ECON Committee delegation to Italy, chaired by Vice-Chair Stolojan, had in-depth and very fruitful discussions on 29 and 30 October with senior public and private representatives of the Italian financial and economic sectors.

These included the Ministers of Finance and European Affairs, the Governor of Banca d'Italia, Members of the Italian Parliament (Finance Committee, Budget Committee, European Affairs Committee of the Chamber of the deputies and the Senate), President of Stock Exchange Supervision Authority (CONSOB), President of the Antitrust Authority, President of the Italian Institute of Statistics (ISTAT), President of the Association of Joint Stock Compagnies (ASSONIME) and representatives of the Italian banking, insurance and finance federation (FeBAF).

Discussions paid attention to the main strengths of the Italian economy, which are inter alia the sound balance sheet of private households and the low private debt, and also weaknesses regarding the lack of competitiveness and the large public debt. On this latter issue, large gross financing needs and unfavourable interest-growth differential make the fiscal consolidation and the structural reforms that the Government has already initiated in various areas (labour market, pension reform, public administration and taxation, including the recently adopted financial transaction tax) challenging.

On the Banking Union project, the ECON delegation welcomed the fact that both the public authorities and the representatives from the financial industry have echoed a clear message in favour of the single supervisory mechanism, whilst stressing the need to find a right balance between powers conferred on the ECB and the competences of national supervisors. They also spoke in favour of the next stages of the reform (i.e. European recovery and resolution funds and European deposit guarantee scheme), within a realistic timeframe.

Finally, democratic accountability, notably through an effective dialogue between the EP and national parliaments, has been recurrently presented as a principle of paramount importance. In this regard, Vice-Chair Stolojan reiterated the invitation for an Economic Dialogue between the Economic and Monetary affairs Committee of the European Parliament and the Italian Finance Minister, which could take place before the end of this year.

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