Economics

EU Says Italy's Planned Budget Deviation is ‘Unprecedented’

Commission asks Italy for clarifications on budget in letter
EU’s Moscovici met Italy’s Tria in Rome to discuss budget

Chris Bailey, European strategist at Raymond James, discusses Italy’s 2019 budget plan.Daybreak: Europe." (Source: Bloomberg)

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By Viktoria Dendrinou and Chiara Albanese

October 18, 2018 at 4:10 PM UTC

Updated on

October 18, 2018 at 5:42 PM UTC

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The European Commission said Italy’s spending plans are excessive and asked for an explanation, the first step in what threatens to become a full-blown standoff between Brussels and Rome.

Bonds plunged Thursday as the European Union’s executive body dispatched a letter to the Italian government requesting changes to its draft budget plan by Oct. 22.