Still, it is not the formal rejection of the budget – but the letter of the EU financial Commissioner Pierre Moscovici, Italian Finance Minister Giovanni Tria has written, is more than clear.
for 2019 planned budget in Italy, it is said to contain the most serious breaches of EU rules. The planned expenditures are too high, the structural deficit would rise, instead of falling and the national debt would not lie in the framework of the Union’s agreed rules.
Moscovici was able to hand over the Letter Tria personally. In Brussels a two-day EU summit on Thursday went to the end. The Commission has published the letter in the meantime, also on your Website.
The plans for the new borrowing will be an “unprecedented” departure from the criteria of the stability Pact, it is said further in the Letter. In addition, the Commission of the government in Rome a – short – period: Until Monday at noon you have the findings in time for “clear”.
In contrast to the clear wording of the letter tried Moscovici at a joint press conference with Tria, the conflict downplay. The confrontation with Rome will require your time, he said. Brussels wool a peaceful and constructive dialogue. “We have simply written a letter,” said Moscovici, and this letter was only the start of a potentially long process.
Italy’s Prime Minister, Giuseppe Conte announced in Brussels after the end of the EU summit, the government in Rome will meet on Saturday, and on the budget for advice. He had earlier announced the day earlier that he stop on top of critical reactions. “This is not a budget, as the Commission had expected,” said Conte.
Conte sees “no room” for Changes
Conte gave But little hope of major Changes. The deviations from the requirements of the Union, however, were “not great”. Prior to that, he had passes already said: “The more time, the more beautiful I find our Budget”. And on Wednesday, he had declared that he could see “no room” for Changes.
Also on Wednesday, the EU budget Commissioner Günther Oettinger (CDU), told the MIRROR, to stay it in the current state, will have to reject the Brussels authority in the draft budget for Italy for the coming year. On Thursday, handed knights in armour letter is a step in this direction. It would be the first Time that the EU Commission has the Etatplan of a member country.
The Italian government had submitted the draft budget on Tuesday night in the last Minute. In it, she is planning a significantly higher level of borrowing than with Brussels agreed. The coalition of the right of national Lega and left-wing populist Five-star movement wants the government deficit in the coming year to 2.4 percent of annual economic output to rise in order to Fund its expensive campaign promises. This is three times more than the 0.8 percent it had promised the Italian predecessor government of the EU-Commission.
EU leaders back Commission
And there could be more, since the 2.4 per cent forecast is based on extremely optimistic assumptions of the Italian government to economic growth. Although Italy’s government with its borrowing plans even below the Maastricht limit of three percent. However, Italy must rules according to the EU, including its total debt to reduce. This may therefore be, actually, only 60 per cent of annual economic output, is now is a full 70 percentage points. Italy’s debt to GDP ratio of 130 per cent of gross domestic product, surpassed in the Eurozone only by Greece.
At the EU summit in Brussels had spoken to the heads of government of member States is critical to the Etatplänen of Italy. So Conte also met with Angela Merkel (CDU). The Chancellor was “very interested in our structural reforms,” said Conte after that. The Dutch Prime Minister, Mark Rutte, said in the short message service Twitter, he had sent Conte “the concern of the Netherlands”. The EU Commission gave its “total support,” said Rutte.
Federal Chancellor of Austria, Sebastian Kurz, whose country currently holds the EU holds presidency of the Council, warned of a threat to the Eurozone. The EU targets for deficits and overall debt would have to apply “for all,” said Short. Over-Indebtedness cannot be for the States concerned to be dangerous, but “dangerous for the whole of Europe”.