Italy: EU rejects budget, asks for new draft in 3 weeks

A new one which must be sent to Brussels within three weeks.
Italy: EU rejects budget, asks for new draft in 3 weeks
23 October 19:45 2018 Print This Article

 

The rejection was widely expected because of what the EC sees as an unacceptably high deficit of 2.4% of GDP next year.

The EC also says the budget’s growth forecasts are unreasonably optimistic.

The spread between Italian and German 10-year bond yields, a gauge of investor confidence, rose back to 310 points with a yield of 3.52% after the EC’s thumbs down.

Premier Giuseppe Conte said “we are not gamblers gambling our children’s future on the roulette wheel” and stressed that “economic growth is the best way to get out of the debt trap”.

He added: “I can assure you that this executive will not take Italy out of Europe. We feel at home in Europe and think the euro is and will be our currency, the currency of my son who is 11 and that of my grandchildren”.

Conte also said that the government would conduct a spending review if necessary.

“We are ready to make spending cuts in 2019,” he said.

There is no turning back on the 2019 budget plan, Deputy Premier Matteo Salvini said ahead of the EC rejection.

“The only organism that can improve the budget is the Italian parliament,” he said.

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