Govt upbeat about EU budget talks

(ANSA) - Rome, December 12 - Sources at Premier Giuseppe Conte's office said Wednesday that the government has put its proposal for an agreement with the European Commission on its 2019 budget plan "in black and white". Conte is meeting European Commission President Jean-Claude Juncker for crunch talks as Rome seeks to avert the danger of the EC opening an infringement procedure over the budget. The sources said the government was going into the meeting with the conviction that it has "good reasons" to reach an agreement. The optimism is fuelled by the likelihood that Italy's argument will be strengthened by the fact that France looks set to breach the EU's 3% deficit-to-GDP threshold after President Emmanuel Macron announced new measures to alleviate hardship following weeks of violent protests. The European Commission has rejected Rome's budget plan for 2019, which sees Italy running a deficit of 2.4% of GDP next year, saying it breaks EU rules. Conte's 5-Star Movement (M5S)-League executive has said an expansive budget is needed to finance key pledges and boost sluggish growth.
    Bloomberg reported that Italy will propose a deficit of 2%, rather than 2.4%. Deputy Premier and Interior Minister Matteo Salvini, meanwhile, said Rome would not accept the Commission treating France and Italy differently.
    "The music will change if there were prejudice against Italy while a blind eye is closed for others," Salvini said.
    President Sergio Mattarella said he hopes the government reaches an agreement with the European Commission over its budget plans during a working lunch with Conte and other ministers on Wednesday, sources said. The head of State said an EU infringement procedure would create major problems for Italy's economy, the sources said.
    The discussion also turned to the EU budget and concerns that some reform proposals could damage Italy.