EU ready to take steps to discipline Italy - Reuters
|As reported by Reuters, Wednesday will see the European Commission begin to take its first steps in punishing Italy for violating EU terms in their 2019 budget.
Key quotes
Around noon (1100 GMT), it (the Commission) will publish its opinions on the drafts of all the 19 countries sharing the euro, including that of Italy’s eurosceptic government, which has been revised only slightly from the version the EU executive rejected in October.
The Commission will therefore also publish a report that Italy is in breach of the EU law that says public debt cannot be higher than 60 percent of GDP, or, if it is, has to be falling towards 60 percent at a satisfactory pace.
Italy says expansionary measures are needed to head off an economic slowdown affecting the whole of Europe.
Economy Minister Giovanni Tria says France has been given greater leeway than Italy on its budget in recent years, and has pointed out that Italy’s “primary balance”, excluding debt-servicing costs, has been in surplus for almost 20 years.
But at 131 percent, Italy’s debt is proportionally the second highest in the euro zone after Greece’s. The Commission forecasts that it will remain at that level through 2020.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.