The 2019 Italian budget bill
shows a deviation "without precedent in the history of the
Stability Pact", the European Commission says in its letter of
reproach to Italy.
This is due, it said, to an expansion close to 1% and a
deviation form targets equal to 1.5%.
This has given rise, it said, to "a particularly serious
non-compliance with the Pact's obligations".
It asked the government to give a response to its strictures
by Monday October 22.
The letter, handed to Economy Minister Giovanni Tria by
Economic Affairs Commissioner Pierre Moscovici in Rome, also
said the non-compliance with the recommendations of the
parliamentary budget office broke EU rules.
Tria said after meeting Moscovici that he hoped to bring
Italy's and the European Commission's positions "closer" after
receiving a letter from the EC saying the 2019 budget
represented an "unprecedented deviation" from the Stability
Pact.
"What we have described as constructive dialogue opens,
starting from different assessments of our economic policy.
"We have noted these different assessments, we believe we
have to deepen our explanations of the reasons for our policy,
to better make known to the Commission the structural reforms
that we will carry forward with the budget law and therefore we
hope to be able to bring our positions closer."
Moscovici said the deficit of 2.4% of GDP "is a concern to
the Commission and to many member States.
He said there had been no discrimination against Italy, which
had been treated "on a par with everyone else"
Moscovici said the Commission was a "referee" and not an
opponent of Italy.
He said "we are asking who will foot the bill for the new
measures" in the budget, such as a basic income, flat tax and
pension reform overhaul.
The commissioner went on to say that "now we must go forward
with sangfroid, according to EU rules".
He said "let us leave political opinions outside the door".
Moscovici added "I only have a Plan A, to stay in the euro
together".
Premier Giuseppe Conte said "the situation is not
precipitating because of the Commission's letter".
He said "we will fend off the negative judgement of the
ratings agencies".
Conte said "the Italian economy is in good health, the
fundamentals are solid".
Tria added that "parliament can improve the budget, but
within the financial figures (already laid down)".
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