New EU Economy Chief Warns Italy Not to Expect Special Treatment

(Bloomberg) -- Italy’s former prime minister said his country shouldn’t expect any special treatment when he takes charge of budget oversight at the European Commission next month.

“I want to be crystal clear: I am not and I will not be the representative of a single government,” Paolo Gentiloni told EU lawmakers at his confirmation hearing in Brussels. “I will be the commissioner for economic affairs and in this capacity I will deal with all 27 budget plans.”

The Brussels-based commission monitors the budgets of European Union members, issues economic policy recommendations and initiates sanction procedures when fiscal rules are breached. Earlier this year, Italy narrowly dodged a disciplinary procedure after striking a fragile truce with the EU executive over measures to rein in its debt.

The appointment of an Italian as budget chief has raised eyebrows in Brussels, not least because the commission is already being accused of being too lenient on one of the continent’s most indebted states.

Italy’s Finance Minister Roberto Gualtieri, a veteran EU lawmaker, has presented an outline of fiscal plans that are set to stretch the flexibility of EU’s rules. Gentiloni said Italy will be offered the same leeway envisaged for all member states.

“I will not comment on the Italian draft budget because, by the way, we don’t have it,” he said. Italy must send its plans to Brussels by Oct. 15.

Gentiloni also backed calls to simplify the EU’s rulebook amid mounting criticism that its convoluted provisions are too opaque to be understood by taxpayers and governments alike.

Echoing European Central Bank President Mario Draghi, the EU’s new economy chief appealed to countries running budget surpluses, such as Germany, to spend more and help weather a slowdown in the continent.

“Especially in these times facing such a slowdown we need to add to monetary policy a more coordinated fiscal policy,” Gentiloni said.

To contact the reporters on this story: Viktoria Dendrinou in Brussels at vdendrinou@bloomberg.net;Nikos Chrysoloras in Brussels at nchrysoloras@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Alessandro Speciale, Ben Sills

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