Italian Finance Minister Roberto Gualtieri said Italy’s standing and reputation in Europe had suffered from the previous coalition government’s rows with Brussels, including over Italy’s budget.
The coalition between the right-wing populist League and the anti-establishment Five Star Movement (M5S) collapsed in August.
The new government is now comprised of the M5S and the Social Democrats (PD), but it is still led by independent law professor Giuseppe Conte.
“The ambivalent and conflict-prone relationship between the League and Europe has cost us dearly.
“This is because of the billions that have been thrown away through higher interest rates, less trust and fewer investments, and also because of Italy’s reduced political influence in Brussels,” Gualtieri told the newspaper La Repubblica in an interview published Friday.
Gualtieri, who previously served on the EU Parliament’s Committee on Economic and Monetary Affairs, told La Repubblica that the “flat tax” planned by the League would not come into effect.
Instead, the new government plans to introduce tax breaks for low-income workers.
Addressing the argument with Brussels over Italy’s budget, the Social Democrat said he wanted to de-escalate the situation.
He said, “This government is fighting within the rules, but it is also trying to change and improve.”
Italy’s debt amounts to 113 per cent of its GDP, and Rome is required to reduce its debt according to EU regulations.
The Eurozone only allows for a maximum of 60 per cent of GDP in debt.
“It is important that we find a way to credibly reduce the debt, either through economic growth, or through stable public finances,” Gualtieri said.
The finance minister also suggested a new environmental programme, a “Green New Deal,” that could be excluded from the deficit.
