July 29, 2021

The Italian government prepares its response to Brussels on its budgets

The Italian government prepares its response to Brussels on its budgets



The Government of Italy finalizes its revision of the General Budgets for 2019, which it must send today to the European Commission, since the first draft was rejected due to its forecast of an excessive deficit.

The response to the EU executive will probably come after a Council of Ministers is expected around 20.00 local time (19.00 GMT), when he returns to Rome the Prime Minister, Giuseppe Conte, who attends in Palermo (south) to a conference on Libya .

Before Conte will meet with the leaders of the two parties that support his Executive, the anti-system 5-Star Movement, Luigi Di Maio, and that of the extreme right-wing League, Matteo Salvini.

On October 23, Brussels rejected the draft budgets for 2019 sent by Italy when it found that it did not comply with fiscal norms because it included an increase in the deficit of 2.4% of gross domestic product for 2019.

With a greater debt Rome intends to finance the promises that the two parties in the government launched in the election campaign earlier this year, as well as make a series of public investments with which they believe will favor growth.

However, the Conte government does not intend to change "the fundamental pillars" of budgets, as reiterated Economy Minister Giovanni Tria, and is expected to insist on placing the deficit at 2.4%.

In Rome they also rule out that an infringement procedure can be opened to the country because of its budgets.

Some media suggest that the strategy of Italy would involve more privatizations and cessions of public entities to control the deficit, as well as include a series of clauses that, in case of high debt, would automatically cut a series of expenses.

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