UPDATE 1-EU's Gentiloni pledges to counter economic slowdown risks with fiscal efforts

The nominee to become the European Union's next economic commissioner pledged "adequate" fiscal efforts on Thursday to counter the risks of an economic slowdown in the bloc.

In his confirmation hearing before EU lawmakers, Italy's Paolo Gentiloni reiterated that he would seek to use the leeway allowed by EU fiscal rules to permit governments to invest for growth and would also target a reduction of public debt. He said the next European Commission would decide on the recommended fiscal stance for the eurozone after it releases new economic forecasts on November 7.

The bloc has currently a "broadly neutral" fiscal stance, despite pressure from some countries for more expansionary plans to counter recession risks. The European Central Bank also backs a more expansionary fiscal stance. Gentiloni said the Commission's recommendation would depend on the "seriousness and duration of the slowdown" which will emerge from the EU forecasts.

He also called for a review of EU fiscal rules that would make them simpler and urged an "ambitious" funding plan for an EU unemployment reinsurance scheme. The bloc is currently debating whether to fund this scheme with loans or with more generous grants to states with high unemployment levels.

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