Register for Digital Look

Italy ready to compromise with EU at 2% deficit target

By Caoimhe Toman

Date: Tuesday 11 Dec 2018

Italy ready to compromise with EU at 2% deficit target

(Sharecast News) - Italy could be ready to bring down its deficit target to 2% as the European Commission would be willing to accept an increase in Italy's deficit to 1.95% for next year.
Italy and the EC could be ready to compromise on next year's spending plans for the country although the final target still needs to be negotiated, newspaper La Republica reported on Tuesday, with Italy's finance ministry is pushing for nothing below 2%.

The EC already rejected the first draft for Italy's controversial spending plans that would see the deficit target rise to 2.4% of GDP next year from 1.8% in 2018.

The commission started what's known as an "excessive deficit procedure" against Italy and urged the government to amend its spending plans or it would face sanctions from the EU that could include a fine and reduced funds.

After agreeing to a 2% target, Italian government sources were reported on Tuesday as suggesting there was now a strong chance that the country would no longer be disciplined by Brussels.

Italy's Prime Minister Giuseppe Conte will meet the EC president Jean-Claude Juncker on Wednesday to avoid the financial sanctions.

EC vice president Valdis Dombrovskis said on Monday that "time is very limited," and urged the Italian government to implement "substantial" changes. "We are ready to take the next steps" if talks are not successful, Dombrovskis said.

Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange Market.

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page