Budget incompatible with debt cut - EC

High debt still 'crucial vulnerability'

(ANSA) - Rome, October 30 - 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.