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Mario Draghi: “The highly indebted EU States must follow the Stability and Growth Pact.”

European Central Bank Governor Mario Draghi said Friday that the highly indebted EU States must follow the Stability and Growth Pact.

The government of Italy, which has a debt of over two trillion euros, has proposed letting its budget deficit rise to 2.4% of GDP next year.

The European Commission has expressed concern that this plan could lead Italy to breach the rules of the Stability Pact.

“In the euro area, in order to reap the full benefits of our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential and reducing vulnerabilities,” Draghi told the meeting of the International Monetary and Financial Committee, in Bali, Indonesia.

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