The Italian prime minister, Giuseppe Conte, saying that an amended budget will come within a short time.
the Finance ministers in the eurozone said Tuesday that Italy’s draft state budget for 2019 is in violation with EU rules. They express support for the EU-Commission’s request that the Italian government should amend the draft.
Italy, which already has the second highest debt in Europe at 133 percent of the country’s gross domestic product, wants to borrow and spend more money in order to live up to election promises.
But this is in contradiction with the EU’s rules, which says that a member state’s debt should decrease annually until it is below 60 percent.
the EUROPEAN Commission, which monitors the EU’s rules, said last month that Italy is in breach of the rules.
– We support the Commission’s view, and we recommend that Italy take the necessary steps to comply with the rules, says the finance ministers in a statement, which also calls on Italy and the EUROPEAN Commission to continue a dialogue.
The Italian prime minister, Giuseppe Conte, announced, however, early Tuesday, that an amended budget will come “in the coming hours”.
– I’m about to finalize a proposal, which the EU must take into consideration. It will become clear in the coming hours, he says.
the EUROPEAN Commission has formally paved the way for a procedure that can lead to the fact that Italy can be punished. The size of a financial penalty, if the country is not in a timely manner to correct, can be in the 0.2 percent of the country’s gross domestic product. There are also other sanctions available which stop the transfer of structure – and up investment funds.
the Government in Rome has previously said that increased government spending will cause growth to increase and thus overall be positive for the country’s economy.