Italian Government Stands Firm on Budget Against EU

Italy’s populist government is standing firm on its new budget proposals, but it could now pay the price for doing so with the EU launching disciplinary measures against the country.

The European Commission — the EU’s legislative arm — said that Italy’s 2019 draft budget does not comply with the EU’s requirement that member states work to reduce their debt piles. As such, the Commission will now launch what’s known as an “Excessive Deficit Procedure” that could lead to Italy being fined.



Italy’s Deputy Prime Minister Matteo Salvini remained defiant after the news, saying he will talk to the Commission “politely, as always, but will carry on.”

He said Italy would explain its structural reforms and investment plans to the EU. He said he hoped EU sanctions would be avoided and that if not, these would be “disrespectful” to Italians, Reuters reported.

Italian Prime Minister Giuseppe Conte, who is largely seen as a technocratic leader under Salvini and his co-Deputy Prime Minister Luigi Di Maio, said the government is convinced over its budget. He said he will discuss the matter with European Commission President Jean-Claude Juncker on Sunday.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza