Italy Rejects European Commission Demands For More Modest Budget

14th November 2018

The Commission had told Rome to revise the budget or face possible fines, but Italy's government is sticking to its guns.

The Italian government has decided to stick to its costly budget plan, defying the European Commission in the process.

The Commission had told Rome to revise the budget or face possible fines, since the high level of spending proposed in Italy’s budget could exacerbate its high levels of debt. It was an unprecedented move with regard to an European Union member state.

Matteo Salvini, one of Italy’s deputy Prime Ministers, said a deficit target of 2.4 per cent and a growth forecast of 1.5 per cent were unchanged, adding in a statement, that the government would stick to the budget's main parameters.

Meanwhile, fellow deputy PM Luigi Di Maio said that this was the budget Italy needed to get going again.

The Italian government has vowed to ‘end poverty’ by introducing a minimum income for the unemployed, adding tax cuts and scrapping extensions to the retirement age, all of which were key campaign promises which helped the coalition win the election in March.

Their reasoning is that an increase in spending would kick-start growth in Italy, whose economy is still smaller than it was before the financial crisis in 2008.


15th November 2018

"This has to be used as a route to a final deal with frictionless trade and access for services," the Confederation of British Industry said.

13th November 2018

However, more UK nationals are now working in the UK, and the number of people born outside the UK working in Britain has risen.

7th November 2018

People opposed to Brexit asked for a ruling that would clarify the interpretation of Article 50 of the EU treaty, under which London gave two years notice of its departure.

6th November 2018

Malta is among the countries opposing the imposition of a revenue-based tax on internet firms.