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Italy's Populists Win Budget Blessing From Brussels, For Now

  • Commission says no excessive deficit procedure at this stage
  • Verdict is a victory for Conte, who pressured Salvini, Di Maio
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European Commissioner Valdis Dombrovskis says a budget deal with Italy was reached.Daybreak: Americas." (Source: Bloomberg)

Italy’s populist government has secured a deal with the European Union over its spending plans which reassures financial markets and stabilizes public finances, at least in the short term.

The European Commission gave a green light on Wednesday to the country’s 2019 budget, after Rome offered concessions on welfare and pension election promises in order to lower the deficit target to 2.04 percent from the initial 2.4 percent that Brussels had rejected as an “unprecedented” breach of EU rules.