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Italy Targets Deficit at 2.4% of Output in Win for Populists

  • Higher than expected budget gap may rattle markets again
  • Finance chief Tria had fought against wider 2019 budget gap
Updated on

The Italian government set next year’s budget deficit target at 2.4 percent of output, after the ruling populist parties pressured Finance Minister Giovanni Tria into providing more funds for their election promises.

“A deal has been reached with the full government on 2.4 percent. We are satisfied, it’s the budget for change,” Deputy Premiers Matteo Salvini and Luigi Di Maio said in a joint statement Thursday evening following a leadership meeting. News agency Ansa said a 2.4 percent deficit was estimated for 2020 and the following year as well.