According to the agreement reached in the budget dispute between the Italian government and the EU Commission has said Bundesbank President Jens Weidmann is concerned about the possible consequences of the agreement. “I’m not upset, but concerned about what this means for the future budget discipline in the Euro area,” Mr Weidmann said the “Welt am Sonntag” (Wams). “The original deficit reduction has at least been conceded. The Commission and other governments will fall in the future even harder to penetrate solid public finances.“
The EU Commission and Italy had argued for weeks about the plans for the Italian budget in 2019. The compromise foresees that Italy is limited, the government deficit in the coming year, to 2.04 percent of the economic output. Prior to the change of power in Rome, the highly indebted country had a decrease of 0.8 percent. The new government aimed for, however, 2.4 percent; it had been rejected by the EU Commission. “It is the Commission and other governments will fall in the future even harder to penetrate solid public finances,” said Weidmann.
‘t worry, the German monetary authorities also expressed with a view to France. The President of France, Emmanuel Macron should implement its Commitments to the protests of the “yellow West” without the funding, it was expected that France will exceed the budget limit of three percent of gross domestic product, he warned-and criticized at the same time, that it is not debt within the monetary Union continue to “different views about the sensitivity of a high state and thus the sense of fiscal rules”.