Italy criticizes the EU financial regulations regarding cryptocurrency.
Italy has voiced opposition to the financial rules of the European Union, describing them as 'outdated and inappropriate.' In the context of countries needing to expand their defense budgets, these regulations have become rigid and hinder global security strategy.
Criticism of the EU budget system.
On Thursday, Italy's Minister of Economy, Giancarlo Giorgetti, called the EU's budget system 'ridiculous and meaningless' and urged reforms to give member states more flexibility in defense spending without fear of financial penalties.
These comments come as Eurozone finance ministers hold important discussions in Luxembourg. The union is debating whether to maintain a balanced budget or to boost investment in European security while reducing requirements for financial discipline.
Change the EU financial rules to increase the defense budget.
Recently, the European Commission introduced new provisions allowing countries more flexibility in budget regulations, also known as the Stability and Growth Pact. The goal is to help governments expand their defense budgets to counter increasingly rising security threats, especially from Russia.
Accordingly, countries can increase their defense budgets by up to 1.5% of GDP annually over four years. Even if the budget deficit exceeds the EU limit of 3% of GDP, countries can still take advantage of this flexibility, except for those already under debt control.
Italy opposes to protect its financial reputation.
Italy is committed to reducing its budget deficit from 3.4% of GDP in 2024 to 2.8% in 2026. However, the flexible use of the defense budget could hinder this goal and increase national financial pressure.
Two senior leaders of the Italian government have confirmed that the country wants to avoid measures that could pressure the financial markets, in order to maintain a positive credit rating and uphold investor confidence.
In May, Moody’s upgraded Italy’s credit outlook to 'positive,' while S&P Global raised the country’s credit rating to 'BBB+'. These reflect progress in Italy's economic management.
Italy wants the EU to collaborate in borrowing to fund defense.
Giorgetti emphasizes the importance of common financial capacity in expanding Europe’s defense budget. He suggests that the EU should borrow collectively to share the financial burden among member states, helping to reduce pressure on individual national budgets.
Meanwhile, budget-minded countries like Germany and the Netherlands continue to strongly oppose this idea, asserting that each country must take responsibility for its own finances.
Faced with pressure from NATO commitments, EU regulations, and the need to enhance security, Italy must balance multiple budgetary goals, defense strategies, and financial markets.
Source: https://tintucbitcoin.com/y-phan-doi-quy-dinh-ngan-sach-eu-tien-dien-tu/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
