The European Commission has
decided to reject the Italian budgetary planning document and to
ask for a new one which must be sent to Brussels within three
weeks, the EC said Tuesday.
The rejection was widely expected because of what the EC sees
as an unacceptably high deficit of 2.4% of GDP next year.
The EC said last week this amounted to an "unprecedented"
breach of the Stability and Growth Pact.
The EC also says the budget's growth forecasts are
unreasonably optimistic.
The spread between Italian and German 10-year bond yields, a
gauge of investor confidence, rose back to 310 points with a
yield of 3.52% after the EC's thumbs down.
ALL RIGHTS RESERVED © Copyright ANSA
