EU Finance Ministers Inch Towards Deal on New Fiscal Rules After Germany-Italy Clash

European Union finance ministers moving closer to agreement on new fiscal rules for the bloc's debt this year after months of disagreement between Germany and Italy.

Key development is Germany showing willingness to compromise and consider options like temporary exemptions for certain investments. Italy open to common debt reduction rule.

EU Commission Vice President says ministers still face challenging "fiscal camino" to reach deal, referencing religious pilgrimage ending in Santiago.

Rules suspended during pandemic, due to restart 2023. Commission wants deal this year to reinstate in January.

Divide remains between Germany/allies wanting less flexibility, and France/Italy concerned cuts could threaten growth. Goal is balancing debt reduction and investment.