The Italian budget plan for
2019 will hit growth and bring fresh austerity unless it is
modified, European Commission Vice President for the Euro Valdis
Dombrovskis said after the EC rejected the package Wednesday.
Dombrovskis added that the uncertainty over the budget
"undermines the progress made so far" in keeping Italy's public
debt down.
He also said that the eurozone can hold up if there is a
financial shock from the market tension linked to the Italian
budget.
"It has sufficient instruments to cope with shocks" and so
far "there have just been small spillovers," he said.
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