The European Commission threatened Italy with fines
The Italian authorities must provide an updated version of the budget in 2019, otherwise Rome face heavy fines.
The European Commission has demanded from Italy to introduce the draft budget for 2019, corresponding to the EU standards. On Monday, November 5, said the European Commissioner for the economy Pierre Moscovici at a meeting with the Finance Ministers of the Eurozone countries.
“Erroneous” to believe that Brussels will go to Rome “kind of deal” to resolve the conflict, said the Commissioner.
“No, it is not discussed, we don’t negotiate. Rules are rules, they must be respected,” added Moscovici.
Until 13 November, the Italian authorities at the request of Brussels will have to submit an updated version of the budget in 2019. Otherwise, the EU will launch against Rome the procedure associated with excessive deficit and fraught with high penalties.
In late October, the European Commission rejected the draft budget for Italy for the next year. Rome has planned a deficit of 2.4% of GDP. The only way a government coalition of right-wing radicals and populists, by his own admission, will be able to Finance campaign promises. However, according to EU regulations, the deficit should not exceed 2% of GDP.
The EU believes that the policy of the new government of Italy has decided to abandon the previous course of financial savings and fiscal consolidation threatens financial stability in the Eurozone and throughout the EU. Criticism of the Italian government remind us that public debt of Italy amounts to 2.3 trillion euros, or 130% of GDP. It is the second largest debt in the Eurozone after Greece.
However, on 20 October, the Italian authorities approved the draft budget despite criticism of the EU. Italy is configured to conduct a constructive dialogue with the European Union in the coming weeks, said the Prime Minister, Giuseppe Conte.
Source: Russian service of Deutsche Welle