Budget incompatible with debt cut says EC

High debt still 'crucial vulnerability'
Budget incompatible with debt cut says EC
31 October 09:44 2018 Print This Article

The Italian budget for 2019 is incompatible with the reduction of debt that at over 130% of GDP is still a “crucial vulnerability,” the European Commission told Italy .

In the letter, EC economic and financial affairs directorate Director General Marco Buti writes  “such a high public debt limits the government’s room to manoeuvre for more productive spending to benefit its citizens”.

The italian economy ministry  Giovanni Tria said earlier it had received a new letter from the European Commission asking for “a report on the so-called ‘significant factors’ that may justify a debt/GDP ratio with a less marked reduction than that requested,” the ministry said Tuesday.

It said “the reply must be sent by November 13”.

A similar letter was sent in past years, the ministry said.

The reply “will be sent to Brussels respecting the deadline indicated”, it said.

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