Debt-to-plans – Italy defends the draft budget, The Italian government has rejected the EU’s required reworking of your draft budget. The plans include a new borrowing of 2.4 percent in the coming year. © Photo: Remo Casilli/Reuters
The Italian government rejects the EU’s required reworking of your draft budget. The budget plan remain unchanged, announced the Deputy head of government and Minister of economy, Luigi Di Maio on Tuesday evening, shortly before the expiry of the EU deadline. “We are Convinced that this is the budget that the country needs to get back in gear,” said Di Maio, after a Cabinet meeting in Rome.
The EU Commission had rejected in October in the fall, for the first time ever, the draft budget of a member state. The authorities in Brussels called on Italy until Tuesday to submit at midnight on a reworked draft budget. The Commission criticised the fact that Italy’s debt is for 2019, three times as high as that of the previous government, with Brussels agreed.
Italy under the excessive deficit procedure, the Commission could start soon. The EU could prescribe Partner Italy more fiscal discipline. Violations of these requirements are likely to impose, the Minister of Finance theoretical financial penalties. However, the Euro-sceptics would benefit in Italy.
IMF warns Italy
The group head of the European people’s party, Manfred Weber, with a relent of Italy. “The realities, the facts will catch up with Rome very quickly,” said Weber in the ARD. The populist government is going to be similar to the Greek Prime Minister Alexis Tsipras, which agreed finally with the EU.
since June, President of the Italian government from the populist Five-star movement and the xenophobic Northern League party wants to end the austerity, despite an already very high overall debt. You want to Finance with your draft budget, among other things, the introduction of a basic income and the possibility of earlier Retirement.
The International monetary Fund (IMF) warned the Italian government against the planned expansion of the debt. “Italy needs to put any concern about the sustainability of the public debt, which recently resurfaced,” it says in a report the IMF. Otherwise, it could force the increasing interest of the state in a crisis to Save money.