Italy seeks shift from austerity to growth to back Juncker election

The EU, supported by Germany, is working to meet an Italian demand to shift focus from austerity towards growth in a deal that could help cement Jean-Claude Juncker as the next European Commission president.

Italian Prime Minister Matteo Renzi wants to see increased budget flexibility under EU rules. He holds the EU presidency for the second half of the year.

The European Parliament’s Socialists and Democrats group leader Hannes Swoboda indicated yesterday that a flexible interpretation of the Stability and Growth Pact was a condition for Mr Renzi to back Mr Juncker.