Economy 21-11-2018

Brussels rejects Italy's budget and paves the way for sanctions

The European Commission has taken the first step on Wednesday towards the imposition of sanctions on Italy after deciding that the Rome budget bill violates the rules of the European bloc.

In a report on Italy's debt, the European Commission reported having rejected the Italian Government's budget plan for 2019.

"Our analysis suggests that the debt rule should be considered as having not been respected, and we conclude that the opening of a debt-based excessive deficit procedure is justified," says the report. , cited by the agency ANSA.

"The Commission confirms the existence of a particularly serious case of non-compliance, with what the Italian Government has put on the table, we see a risk that the country walks asleep towards instability, " they highlight in the European bloc in its annual review of the spending plans of the nations of the euro zone.

Brussels has repeatedly expressed concern over Rome's budget plans, warning the Giuseppe Conte government that this could trigger another debt crisis that would hurt the entire EU.

The Rome budget plan assumes that Italy will have a deficit of 2.4% of GDP next year. The Italian authorities did not heed the Commission's call to make significant changes in their accounts, and ensured that this deficit was necessary to finance key promises and boost growth growth. Rome also argued that boosting growth is the best way to reduce Italy's debt to GDP ratio of more than 130% .

According to EU regulations, the public debt of a member country of the bloc can not exceed 60% of its gross domestic product or, if it is, it must decrease towards this index at a satisfactory rate.


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