The threat of criminal proceedings against Italy for excessive borrowing is for the time being, averted. Rome had made sufficient concessions in order to avoid this for 2019, said EU Commissioner for Financial Affairs, Valdis Dombrovskis on Wednesday. The Italian government’s proposed solution, although not ideal. However, an excessive deficit procedure could be avoided, provided the Italian plans were implemented.
The Italian government had already spoken on the Tuesday evening of an “informal agreement” with the EU Commission. Previously, they had improved their budget for 2019. The Prime Minister, Giuseppe Conte had announced last week after a Meeting with EU Commission President Jean-Claude Juncker that the debt should be for 2019 less than originally planned. So he responded to the appeal of the EU Commission.
The government in Rome had originally targeted for 2019, with significantly higher expenditure. She wants to promise as a basic security and a pension reform Finance. The EU Commission and Euro group Finance Ministers saw this, but the Euro stability rules are violated and threatened sanctions procedures, with a possible billion met.
Italy needs to restore confidence
“I hope this solution is said to be the basis for a balanced budget and economic politics in Italy,” Dombrovskis. “Italy must urgently restore confidence in its economy, in order to improve the financing conditions and the support for investments. This will improve the purchasing power of all Italians.“
Italy has one of the highest national debts in the world. In Rome there is a mountain of debt of about 2.3 trillion euros piles up. That’s the equivalent of more than 130 percent of economic output. In the Euro-zone to a maximum of 60 per cent are allowed. A state is, he needs to get in the longer term, its debt in the handle.