Italy’s Deputy Prime Minister Luigi Di Maio said that the authorities did not intend to change the budget for the next year at the request of the European Commission. He noted that he did not take seriously the possible penalties that Brussels could apply.
“I guarantee that Italy will remain in the Eurozone,” emphasized the Deputy Prime Minister, “Over the past year, my confidence that we need to be part of Europe has only increased.”
Italy should submit an updated budget by November 13. The European Commission sent it to further refine, because the Italian authorities were too optimistic in their forecasts. In the original version of the main financial document of Italy, a deficit of 2.4% of GDP was recorded. Apparently, the European Commission will render the same decision on 21 November.
The Deputy Prime Minister of Italy emphasizes that he is ready for negotiations, but does not talk about any concessions. He commented as follows: “We will fulfill all the promises that were given to prove that we are credible. We are talking about allowance for the poor and reducing the retirement age. ”
The new forecasts of the European Commission say that Italy’s GDP growth will drop to 1.1% in 2018. In 2019, it will add 1.2%, but the government’s target is set at 1.5%. In 2020 the growth will increase to 1.3%. The deficit will be equal to 2.9% of GDP in 2019 and 3.1% in 2020. The maximum value of this indicator is 3%. It is spelled out in the EU rules.
Mr. Di Maio said that the deficit of 2.4% was quite acceptable, because the economy would start to grow thanks to the measures taken.
Italy’s stock index has slipped during the last trading session by 1.4%. The yield on 10-year bonds has risen to 3.4%.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade