The Italian budget for 2019n is
incompatible with the reduction of debt that at over 130% of GDP
is still a "crucial vulnerability," the European Commission told
Italy Tuesday.
In the letter, EC economic and financial affairs directorate
Director General Marco Buti writes that "Italian public debt
remains a crucial vulnerability".
Writing to Treasury Director-General Andrea Rivera, he says
"such a high public debt limits the government's room to
manoeuvre for more productive spending to benefit its citizens".
Buti also says the high debt remains a concern for the
eurozone.
He says the 2019 budget plan is "incompatible with a debt
reduction".
The economy ministry said earlier it had received a new
letter from the European Commission asking for "a report
on the so-called 'significant factors' that may justify a
debt/GDP ratio with a less marked reduction than that
requested," the ministry said Tuesday.
It said "the reply must be sent by November 13".
A similar letter was sent in past years, the ministry said.
The reply "will be sent to Brussels respecting the deadline
indicated", it said.
The Treasury said the reply would justify the trajectory of
debt reduction outlined in the Budgetary Planning Document.
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