Deputy Premier and Labour and Industry Minister Luigi Di Maio said Friday that the government was not looking for a fight with the European Commission after announcing it will let Italy's deficit-to-GDP ratio rise to 2.4% next year. "Now dialogue will start with the EU and the big private investors and we do not intend to have a clash," 5-Star Movement (M5S) leader Di Maio said.
He said European Economic Affairs Commissioner Pierre Moscovici's warning about debt was part of that dialogue.
"The concerns are legitimate, but the government is committed to keeping the deficit-to-GDP ratio at 2.4% and we want to pay the debt... the debt will come down," Di Maio said. A deficit of 2.4% is well above the target of 1.6% for 2018 that the Commission agreed with the previous centre-left government and three-times the 0.8% deficit pencilled in for 2019.
Technocrat Economy Minister Giovanni Tria is said to have wanted to keep the deficit under 2% but he seems to have caved in to pressure from the M5S and its government coalition partner, Interior Minister Matteo Salvini's League party.
Di Maio said he was not concerned about losses on the Milan stock exchange and rises in Italy's bond spread in response to the deficit.
"I'm not worried because over the next few days we want to meet all the private and public entities that represent the market and reiterate that the 2.4% contains 15 billion euros of investment - the biggest investment plan Italy has ever had," he said.
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