EU to OK Italy deficit of at least 2.3% (2)

(ANSA) - Brussels, September 27 - The European Commission is inclined to allow Italy to have a deficit of "at least 2.3%" of GDP for 2017, after taking account of its spending following the August earthquake and the expenditure required to tackle the asylum-seeker crisis, source close to the negotiations said on Tuesday. The target deficit for next year was meant to be 1.8%. The concession of 0.5 of a percentage point is the equivalent of around eight billion euros in the budget.
    The European Commission is engaged in "positive dialogue" with Italy over the 2017 budget deficit and "we are trying to narrow the gap" between what Italy wants and what the EC is willing to concede, European Economic Affairs Commissioner Pierre Moscovici said Tuesday. He said he hoped that the government's economic blueprint, the Economic and Financial Document (DEF), would help" reduce this gap so that we can reconcile flexibility and rules".