Economics
EU Likely to Reject Italy's Draft Budget Plans, Oettinger Says
- Commissioner tells Spiegel draft budget doesn’t meet EU rules
- EU to send letter to Italy this week outlining breach
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The European Commission is "very likely" to reject Italy’s 2019 budget plan because it’s not compatible with the bloc’s rules, Commissioner Guenther Oettinger said.
Italy’s populist coalition submitted its draft budget to the European Union earlier this week, and is waiting for an initial assessment from the EU’s Brussels-based executive. The government is forecasting a deficit of 2.4 percent next year, three times the previous government’s projection. The extra deficit will help pay for tax cuts, a lower retirement age and new benefits for the poor.