taly’s Prime Minister, Mario Monti, on Tuesday reassured the EU that Italy is on the right track to achieve the commitments agreed during Euro Summit talks on 26th and 27th of October. After a meeting with president of the European Commission, Jose Manuel Barroso, the Italian Premier said his new government can push ahead with bigger reforms than his predecessor.
However, Monti also told journalists in his first visit to Brussels that his meeting with Barroso wasn’t focused on weather Italy can achieve the economic reforms by 2013, but rather on potential institutional reforms in Europe as a whole. When asked about fiscal policies in Italy, Monti stated that all technical details will be discussed with Olli Rehn, European Commissioner for economic and monetary affairs, on Friday in Rome.
For his part, president Barroso expressed his full support to Monti’s determination of tackling the Italian problems. “In these times of crisis and despite huge economic head-winds, Italy is determined to tackle its enormous challenges once and for all”, Barroso said.
EC’s Barroso unveils eurobond plan
President of the European Commission, Jose Manuel Barroso, on Wednesday unveiled the Commission’s new proposal to issue eurobonds as opposed to national issuance by the 17 members of the euro zone. With this new plan, Mr. Barroso expects to decrease market fears on national sovereign debts and avoid continuous bail-outs of countries without financial stability.
“The joint issuance of debt in the euro area could bring tremendous benefits. It could lead to greater financial integration and to the creation of a much larger and more liquid bond market — comparable to that which exists for United States Treasuries.”, Barroso said. However, the Commission stated the the new plan comes together with a more intrusive national budgetary surveillance.
The new proposal comes when countries like Spain, Italy and France have seen their borrowing costs rise significantly.
Barroso’s eurobonds hasn’t so far convinced German chancellor Angela Merkel, who defends treaty changes rather than eurobonds as a more effective solution to the current debt crisis.
Barroso is calling for a public consultation to assess weather the 17 members of the eurozone could use the so-called “stability bonds” to raise money. “I would like to make an appeal for these discussions to be approached by all parties with an open mind and for them to be free of dogma.”, Barroso said.