Italy keen to discuss budget proposal with European Commission

by   |  VIEW 321
Italy keen to discuss budget proposal with European Commission

The European Commission which had raised concerns about Italy's budget proposal had given time until Monday, October 22nd to the country's government to revert with its reply. Sticking to the terms of this mandate, the Italian government did reply and state that it is keen on discussing the terms of its budget with the European Commission in order to try and find a solution.

The Italian budget is in the crosshairs of the European Commission because of its intended target of budget deficit cap. The budget set the target at 2.4% of the country's Gross Domestic Product (GDP) for the next three years, up to 2021.

This target, while within the European Union's threshold of 3%, created problems since Italy follows Greece with its debt (at 130%) within the EU. As such, the EU wants Italy to revise its budget deficit to about 1.8% for 2018.

Luigi Di Miao, the Italian deputy prime minister reiterated that despite the country and the European Commission having differences of opinion regarding the Italian budget plan, Italy didn't want to exit the EU and was committed to the Euro as the sole currency of the domain.

Interestingly, the Italian finance and economic minister Giovanni Tria was not in favour of the budgetary proposal and had even wanted to resign from his position. He was convinced by the remaining members of the current ruling coalition in Italy to not put his papers and continue to oversee the country's economic and financial affairs.