The European Commission and Italy have ended their week-long dispute over the Roman budget plans for the time being. “The solution is not ideal,” said Commission Vice-President Valdis Dombrovskis, “but so that we can avoid an excessive deficit procedure at this time.” The talks with the Italian government had been “confrontational”, but in the end had been agreed, said the EU Commissioner in Brussels yesterday.
The highly indebted country wants to limit the government deficit in the coming year, to 2.04 percent of the economic output. Initially, the government in Rome had made 2,4 percent. After the authorities in Brussels had rejected but determined, drew Italy in the end.
warning the EU
The European Commission has warned Italy’s government in Rome, however, not to water down the agreed budget plans may. You will closely monitor whether the agreement will now be decided in the Italian Parliament, said Dombrovskis. According to the rules of the EU budgetary procedure in Brussels have time until February, a deficit procedure. If there are inconsistencies, will come back to the Commission in January. The Budget offer “still a concern”, and finally it was “still not a long-term solution for the economic problems in Italy,” said Dombrovskis.
The government of the right-wing Lega and the populist Cinque Stelle wants to Fund with a pledge, the higher the public debt choice, especially costly for a basic income and a lower retirement age. She is hoping for more investment and thus higher economic growth – 2019, which is a percent. The high public debt, Italy intends to generate, with the privatisation of approximately 2 billion euros.
in Addition, a number of tax reductions should be examined. Recorded in Italy with 130 percent of gross domestic product, the second-highest sovereign debt in the Eurozone, only Greece is on a worse value.
charge due to France
In the confrontation with Brussels, the Italian Deputy had accused the head of government Matteo Salvini to the Commission, to measure in the evaluation of budgetary plans with the “two Mass”. In particular, with France, to Brussels, to go very much more lenient, criticized Salvini.
The government in Paris had announced that France will initially increase for 2019 planned deficit of 2.8 percent to 3.2 percent. Reason to make concessions to the protest movement of the yellow West in the amount of about 10 billion euros.
EU Commissioner Pierre Moscovici dismissed Salvini’s “suspicion”. “The rules are the same for everyone,” said the Frenchman. To the question, what is the impact of the events in France would have had on the decision in the case of Italy, replied Moscovici: “We can’t ignore this environment, but we prefer dialogue to confrontation and punishment.” The agreement with Italy’s government does not show that the EU-Commission “be the enemy of the Italian people”.
(editing Tamedia)
Created: 20.12.2018, 07:24 PM
