Italy’s coalition parties are resisting any major reduction to next year’s deficit target, complicating efforts to avoid EU disciplinary action over the 2019 budget, a government source said on Tuesday.
The European Commission has rejected Rome’s budget, which predicts the deficit will rise to 2.4 percent of gross domestic product in 2019 from 1.8 percent this year, saying it will not cut Italy’s large public debt as the rules require.
The source told Reuters there were “excellent chances” that the Commission would back down from a threat to discipline Rome if the target was cut to 2.0 percent.
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