Dutch minister opposes Italy’s proposed EU budget exception

Ahead of talks with eurozone counterparts in Luxembourg on 8 October, Dutch finance minister Eelco Heinen said Europe was spending too much and reforming too little. He urged other EU countries to keep debt and deficits low so they could absorb future setbacks, arguing that countries which failed to do so should not expect the Netherlands to pay their bills. [1]

Heinen said he would cite a European Court of Auditors report to press for reform. According to the ANP report carried by Nieuws.nl, the auditors warned that debt in Europe was rising. [1]

His remarks come as Italy seeks an exception to EU budget rules because of high energy prices. ANP reported that the European Commission had agreed Italy could use an energy-related escape clause, allowing extra spending on energy measures of up to 1.5% of the size of its economy. A majority of member states must still approve Italy’s use of the clause. Heinen said he opposed it, but did not say how the Netherlands would vote. [1]

Eurogroup chair Kyriakos Pierrakakis said governments had to tackle high energy prices without letting debt rise too far. Member states were still discussing how to do both, he said. [1]