Italy Strikes Informal Budget Deal With EU, Official Says

Italy and the European Union are said to be one step closer to a final deal over the country’s 2019 budget.

Rome and Brussels have reached an informal accord on the budget, according to a Treasury official who asked not to be named. The deal will be officially announced Wednesday, the official added.

Italy’s populist government has been locked in a tussle with Brussels to avoid sanctions over its contentious 2019 budget.

The coalition in Rome led by Premier Giuseppe Conte is trying to convince the EU’s budget inspectors that its 2019 spending plan will really deliver a deficit of around 2 percent of GDP as it has forecast. Analysis by the European Commission last month suggested that the deficit would actually be close to 3 percent.

In a bid to persuade the European Union that its spending plans are credible, the coalition made up of the rightist League and anti-establishment Five Star Movement have offered the EU a cut in their growth forecast for next year, according to a Treasury official.

Once a deal is formally announced, the government will face a year-end deadline to get the bill through parliamentary approval.

The Prime Minister’s office did not respond to a request for comment late Tuesday.


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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya