ZCZC
BCN-35
ITALY-EU-ECONOMY-BUDGET
Italy 2.2% budget deficit not good enough: Dombrovskis
ROME, Nov 28, 2018 (BSS/AFP) – A reduction in Italy’s public deficit to 2.2
percent, as certain government officials have suggested, is insufficient to
avoid EU sanctions, European Commission Vice President Valdis Dombrovskis
said Wednesday.
In an interview with La Stampa newspaper, Dombrovskis said that since the
deficit of 2.4 percent of GDP in the Italian budget was considerably wide of
Rome’s EU obligations, a substantial change is needed.
The European Commission rejected last month the budget submitted by Italy’s
populist government, as the deficit was considerably higher than the 0.8
percent the previous centre-right government had planned.
Dombrovskis was cited as saying by La Stampa that Italy needs to reconsider
its budget trajectory, while adding that discussions were underway.
If agreement is not reached, Italy could find itself the target of an
excessive deficit procedure, which could ultimately lead to a sanction of up
to 0.2 percent of the nation’s GDP.
In recent days Italian officials have indicated they are open to a possible
compromise where the deficit is trimmed.
“If, during the negotiating process, the deficit has to be reduced a bit,
that’s not a big deal,” deputy prime minister Luigi Di Maio told Radio
Radicale on Monday.
When asked whether a reduction of 0.2 percentage points would be enough to
reach a compromise, Dombrovskis told La Stampa that it seemed insufficient.
BSS/AFP/SR/1750 HRS