Euro zone finance ministers have made significant progress in their negotiations on euro zone reform and reached a good result after talks overnight in Brussels, German Finance Minister Olaf Scholz said today.
"After nearly 16 hours of negotiations in the Eurogroup we have a result - a good one. The euro reform has taken decisive steps forward," Olaf Scholz said.
The euro zone finance ministers also agreed to introduce by 2022 new rules that would facilitate the restructuring of public debt in the bloc's countries, the chairman of the Eurogroup Mario Centeno said.
New rules on so-called single limb Collective Action Clauses will be introduced by 2022, Centeno said after a meeting of euro zone finance ministers in Brussels.
Meanwhile, the euro zone finance ministers also said Italy's draft 2019 budget was breaking European Union rules and they agreed with the European Commission that Rome should amend it.
Italy, which already has the second highest debt in Europe at 133% of GDP, wants to borrow and spend more to deliver on election promises, breaking EU rules that say debt has to fall every year until it is below 60%.
The Commission, which is the guardian of EU rules, said last month Italy was in breach of EU rules and should change the draft budget or face a disciplinary procedure that could end up in fines.
"We support the Commission assessment and recommend Italy to take the necessary measures to be compliant with the SGP.
"We also support the ongoing dialogue between the Commission and the Italian authorities," the ministers said in a statement.
