Reuters: Italy's Tria sees no obstacles to budget deal with EU25 June 2019 | 13:31 | FOCUS News Agency
Brussels is threatening to open a disciplinary action against Italy over its growing debt pile. The euroskeptic coalition government in Rome disputes the economic forecasts on which the European Commission is basing its projections.
Giovanni Tria, widely viewed as a moderate voice within the government, said he saw no obstacles to a deal with the EU.
The minister confirmed the government would cut its fiscal deficit target for this year to 2.1% from 2.4% of gross domestic product.
The coalition, led by the anti-establishment 5 Star Movement and the far-right League party, is due to formalize the new deficit targets on Wednesday.
“For a zero growth economy like Italy” a 2.1% deficit represented “a more than prudent fiscal policy”, Tria said, according to the text of a speech to be delivered in Rome.
Under the EU’s excessive deficit procedure, which the bloc’s finance ministers would need to endorse at meetings on July 8-9, Italy would be forced to quickly tighten fiscal policy or face fines.
But minutes of an EU meeting this week showed the executive Commission could give Italy until January to make those policy changes, considered a relatively long deadline.
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