Lagarde: Italia's demands on Pact? We have rules, stick to them
According to the ECB President, 'if the rules apply to the whole of Europe and are followed correctly, then automatically the markets will appreciate'
"I think what is important at the moment is, first of all, to act together as Europeans, instead of looking for different paths, because our enemies would be enthusiastic about fragmentation. Instead, we absolutely have to work together. Secondly, we must stick to the rules'. So said ECB President Christine Lagarde, interviewed by Fabio Fazio on Che Tempo Che Fa, responding to a question on Italy's requests for a derogation from the stability pact and stressing that 'we have rules in terms of budget, in terms of debt, in terms of deficit. We have processes that work and we have to operate within these rules'.
According to Lagarde, 'if the rules apply for the whole of Europe and if the rules are followed correctly, then automatically the markets will appreciate and understand that this or that country is a country to invest in because the risk does not exist'.
Looking more broadly at the economic condition of Europe, Lagarde said that "if we look at the fiscal position of European countries, we are not in a state of austerity, not at all. In 2025, for example, we had an expansion on the fiscal side'. Does this mean that we can simply forget the rules and go beyond our self-imposed limits and disciplines? "No, we have to spend where we can generate growth. We have to do the reforms that will lead to growth, that will help us to be more productive in Europe, that will guarantee more income for European citizens. That is what needs to happen,' he said.
