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Italy's League Discussing Budget Deficit Below EU Limit

  • Spread between Italian and German 10-year bonds narrows
  • Austria’s Loeger says EU must also ensure Italy cuts its debt
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Goldman Sachs Expects New Italy Elections in Spring of 2019
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The League, one half of the populist coalition running Italy, is discussing a 2019 budget deficit below the European Union’s 3 percent of GDP limit to send a reassuring message about government spending plans. Italy’s European partners say that might not be enough.

The government is working on a three-year time frame and “we won’t do everything immediately,” Italian Deputy Prime Minister Matteo Salvini told financial daily Il Sole 24 Ore. Salvini, who’s the League’s leader as well as interior minister, reiterated a promise to respect “all” EU restrictions.