The European Commission said on
Wednesday that it has rejected the Italian government's budget
plan for 2019.
"Our analysis suggests that the debt rule must be considered
to have not been respected," the Commission said in a report on
Italy's debt.
"We conclude that the opening of a procedure for excessive
deficit based on the debt is therefore justified".
Premier Giuseppe Conte's government's budget plan sees Italy
running a deficit of 2.4% of GDP next year.
The 5-Star Movement-League executive did not heed the
Commission's call to make significant changes to the package,
saying the deficit was needed to finance key pledges and boost
sluggish growth.
Rome has also argued that boosting growth is the best way to
bring down Italy's debt-to-GDP ratio of over 130%.
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