Elly Schlein Shifts Democratic Party Stance on Stability Pact to Avoid Internal Division

Elly Schlein, the leader of Italy's Democratic Party, has shifted the party's position from opposition to abstention on the new European Stability Pact during a recent party summit. The move comes as an effort to avoid internal division within the party over the contentious issue.

The European Parliament has approved a reformed Stability and Growth Pact to replace the previous one that was suspended during the COVID-19 pandemic. The new pact, heavily modified by member states, establishes precise mechanisms for deficit and debt reduction while excluding certain national expenditures from government spending calculations.

Schlein explained that the current pact differs significantly from the one initially proposed by the European Commission. The Italian center-right parties, including the Democratic Party, chose to abstain from the vote, unwilling to approve a pact negotiated by the Meloni government.

Why this matters: The reform of the Stability Pact has far-reaching implications for countries with large public debt and high annual deficits, such as Italy. The Democratic Party's internal debate and ultimate decision to abstain highlight the political complexities surrounding economic policies at both the national and European levels.

The new rules provide individual spending plans for the most indebted countries, allowing them to reduce and realign their public debt with European standards. However, the reform has faced criticism from the opposition 5-Star Movement, who accuse the Meloni government of passively accepting "austerity" measures imposed by "Northern European priests."

In the final vote, no Italian party represented in the European Parliament voted in favor of the text. Almost all parties abstained, with the 5 Star Movement being the only Italian MEPs to vote against. Schlein's decision to ask her MEPs to abstain represents a compromise aimed at managing the divided opinions within the Democratic Party on the issue.

Key Takeaways

• Elly Schlein, leader of Italy's Democratic Party, shifted party's position to abstention on new EU Stability Pact.
• The reformed Stability Pact establishes mechanisms for deficit and debt reduction, excluding certain national expenditures.
• The Democratic Party abstained from the vote, unwilling to approve the pact negotiated by the Meloni government.
• The new rules provide spending plans for indebted countries to reduce public debt, facing criticism from opposition 5-Star Movement.
• No Italian party in the European Parliament voted in favor of the text, with the Democratic Party abstaining to manage internal divisions.