The Italian Commissioner admitted that a potential cut in the flow of natural gas would not only have consequences for development, but a more general difficult situation. “We are preparing. On July 20, the Commission will present its proposal for dealing with this emergency,” he said.
His concern for a possible cut in the supply of natural gas to the EUthe Finance Commissioner expressed today, Paolo Gentilonijoining the Eurogroup.
The Italian Commissioner admitted that a potential cut in the flow of natural gas would not only have consequences for development, but a more general difficult situation. “We are preparing. On 20 July the Commission will present its proposal to deal with this emergency situation“, he said characteristically. He also reminded that in its spring economic forecasts the Commission had included an unfavorable scenario with gas supply problems, on the basis of which growth this year would be negative. “At the moment we are not in the unfavorable scenario, but the risks of going there are increasing“, said P. Gentiloni.
On 13 July the Commission will present its interim forecasts on inflation and growth in the EU. Asked if the energy crisis affects the economic forecasts of the Commission, P. Gentiloni answered that the increase in energy prices affect inflation, while admitting that supply cuts and real energy supply shortfalls could change its picture of, for now, “reduced” and “slow” growth. He noted however that “we are not in negative territory at the moment”in terms of development.
Eurozone finance ministers are being asked today to review the macroeconomic situation amid “uncertainty”, the Economy Commissioner said. “We are sailing in troubled waters”, he said characteristically. “It requires the highest possible level of coordination, stability and flexibility“, he added. The European Commission is guiding member states towards a fiscal policy that will turn universal support into more targeted and temporary measures, while keeping activated the general escape clause from the rules of the Stability and Growth Pact. “Broadly our message is vary your fiscal policies according to the level of debt and focus on measures to deal with the energy emergency, on temporary and targeted measures,” emphasized P. Gentiloni.
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