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 
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.