Home Tags Italy Budget
Tag: Italy Budget
"They're all crazy, not only because we aren't talking about it, but because it would be wrong to so this from the standpoint of economic policy."
Italy's voters elected a government with a plan, but they were thwarted by unelected EU commissioners who have sabotaged GDP growth for 10 years.
"I hope this will be the last budget being approved after long and complicated negotiations with Brussels," Italy's deputy prime minister said.
After weeks of wrangling, the two parties agreed to allow Italy to run a budget deficit of 2.04% next year. Stocks and the euro gained on the news.
Tech giants like Amazon were rebounding in premarket trading following one of the weakest Black Friday trading sessions this decade.
The path is no set for the opening of the EU's so-called Excessive Deficit Procedure — which has the power to fine countries within the Eurozone.
Speaking on Tuesday afternoon, Valdis Dombrovskis, the European Commission vice president responsible for the euro, said Brussels had "no alternative" but to reject the proposals.
Italian assets have taken a pounding in recent weeks — here’s why Goldman Sachs thinks it could get a whole lot worse
Moody's downgraded Italian debt to a Baa3 rating last Friday, placing it one notch above junk status and reflecting the country's ongoing budget crisis.
European Union authorities on Thursday rejected budget proposals put forward by Italy earlier in the week, accusing the eurozone's third largest economy of an "unprecedented" break of EU rules around spending and deficit limits.
The budget proposes increasing both Italy's overall government debt and its deficit in the short run, pushing the deficit as high as 2.4% of GDP over the coming years. This means Italy will fall foul of a previously mandated deficit level of 0.8% of GDP maximum.