Economics

Italy Strikes Budget Deal With EU, Dodging Sanctions Process

Italian markets rallied on news of the agreement with the EU
The bloc won’t launch a so-called excessive deficit procedure

European Commissioner Valdis Dombrovskis discusses Italy’s budget and the country’s deal with the EU. Daybreak: Americas." (Source: Bloomberg)

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By Nikos Chrysoloras and Viktoria Dendrinou

December 19, 2018 at 10:59 AM UTC

Updated on

December 19, 2018 at 12:08 PM UTC

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The European Commission decided against launching a disciplinary procedure against Italy over its budget after the country’s populist government pledged to rein in its spending. Italian assets rallied.

Following a meeting of its top officials, the commission, the EU’s executive arm, concluded that concessions by Italy on its budget meant the country didn’t warrant a triggering of the so-called excessive deficit procedure that could eventually lead to financial penalties.