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EU and Italy, some in the budget dispute

long-running dispute over the budget of the government in Rome, accompanied by The EU Commission and Italy have their week. The authorities in Brussels announced that they'll skip disciplinary steps.

The threat of criminal proceedings against Italy for excessive borrowing is for the time being, averted. Rome had made sufficient concessions in order to avoid this for 2019, said EU Commissioner for Financial Affairs, Valdis Dombrovskis. The Italian government's proposed solution, although not ideal. However, an excessive deficit procedure could be avoided, provided the Italian plans were implemented.

The heavily indebted country agreed to limit the government deficit in the coming year, to 2.04 percent of the gross domestic product. Originally, the government had put the 2.4 per cent - three times as much as their previous government. The Brussels authority rejected the Plan as a violation of the EU rules.

Expensive choice

Prime Minister Giuseppe Conte had announced last week after a Meeting with EU Commission President Jean-Claude Juncker that the debt should be for 2019 less than originally planned to Finance promises. So he responded to the appeal of the EU Commission.

The government of the populist Five-star movement and right-wing Lega in Rome, had originally targeted for 2019, with significantly higher expenditure. She wants to promise as a basic security and a pension reform Finance. The EU Commission and Euro group Finance Ministers saw this, but the Euro stability rules are violated and threatened sanctions procedures, with a possible billion met.

Prime Minister Conte and Commission head Juncker last week in Brussels. Italy has one of the highest national debts in the world.

About 2.3 trillion euros of debt

"I hope this solution will be the basis for a balanced budget and economic policy in Italy", said Dombrovskis. "Italy must urgently restore confidence in its economy, in order to improve the financing conditions and the support for investments. This will improve the purchasing power of all Italians."

Italy has one of the highest national debts in the world. In Rome there is a mountain of debt of about 2.3 trillion euros piles up. That's the equivalent of more than 130 percent of economic output. In the Euro-zone to a maximum of 60 per cent are allowed. A state is, he needs to get in the longer term, its debt in the handle.

In the financial markets of Italy had triggered the budget plans in recent months considerable anxiety. In the case of a collapse of the Italian public finances of the Euro-zone and Germany would have threatened serious consequences.

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