Economics

Italy Offers to Cut Deficit From 2020 in Peace Offering to EU

  • Deal caps weeks of government wrangling that unsettled markets
  • Finance chief Tria will now face a battle with EU institutions
Italy Exiting Eurozone Unlikely at This Point, Shepherdson Says
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Italy set next year’s budget deficit target at 2.4 percent of economic output with a commitment to reduce it in 2020 and 2021, a partial concession to the European Union after it pressured Finance Minister Giovanni Tria to contain the ruling coalition’s spending requests.

Five days after the projections were due to be released, the government still hasn’t published the economic growth forecasts underpinning its plans. Those details will come Thursday, a government spokeswoman said.