Italy's economy minister has announced plans to reduce the national debt burden over the next few years. The news may help calm jittery markets — but will everyone be happy?
Rome is determined to stick to fundamental aspects of its 2019 budget despite pressure from Brussels, according to Italian Economy Minister Giovanni Tria. The EU believes Italy's plans are "overly optimistic" and risky.
Italy's populist government is determined to stand by its plans to raise its already high deficit despite a formal warning from the EU. Rome has, however, promised to keep an eye on its sizable debt pile.
The European Commission has for the first time ever rejected the budget of a member state, as it said the spending plans of Italy's populist government were violating the bloc's debt limit and needed revision.
Italy has approved a controversial new budget law, which includes a 2.4 percent public deficit target. The budget defies the European Union's fiscal discipline rules, but the government insists it will drive investment.
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