Premier Giuseppe Conte's 5-Star Movement-League government has chosen not to back down in a tussle with the European Commission over its budget plan for 2019. The Commission had told Rome to significantly change the package, which sees Italy running a deficit of 2.4% of GDP next year, saying otherwise it may open an infringement procedure for failing to respect the Stability and Growth Pack.
The government, on the other hand, says an expansive budget is needed to finance key pledges and boost growth. Late on Tuesday, Economy Minister Giovanni Tria sent the EC a revised version of the government's draft budgetary plan, accompanied by a letter on the strategy being adopted.
But the plan to run a 2.4% deficit was unchanged.
Tria wrote there is a "safeguard cushion" that will kick in if the target of 1.5% growth in 2019 is not reached.
He said speedy corrections on spending and revenues will be made if there is a deviation.
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