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Merkel Tells Renzi He Can’t Bend Euro Rules to Boost Growth

  • Leaders of Italy, France, Germany meet to plan EU’s future
  • Post-Brexit talks held on Italian navy ship in Mediterranean

German Chancellor Angela Merkel lauded Italian Premier Matteo Renzi’s economic policy as “courageous,” while signaling that European Union budget rules can’t be bent to help Italy boost growth.

Merkel’s comments alongside Renzi and French President Francois Hollande hinted at one of the divisions between the leaders of the euro area’s three biggest economies as they met on Monday to plan the European Union’s way forward after Britons voted to leave the bloc. Italy’s economy stagnated in the second quarter, pushing off budget forecasts, and Renzi is pressing for greater flexibility by the European Commission.