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On Friday the IMF top official stated the worries that the European Union has regarding the Italy’s deficit and has emphasized the importance of respecting the EU budget rules within 2019 budget, as well as improving public finances in order to enable more room for loosening the fiscal policy during the next economic recession. The EU officials has expressed their worries that Italy’s 2.4% of GDP budget gap in the year to come is already high and may be even higher due to the fact that Italy’s draft budget did not specify the deficit boosting measures and the possibility of lower than expected economic growth must be taken into consideration.
According to Reuters, Brussels is expecting Italy’s populist government to submit the 2019 draft budget plan today in order to see if it is in line with the EU Stability and Growth Pact. However, it would not come as a surprise if the submitted plan breaks the rules. The inspection of the plan is triggered by the market concern of Italy’s borrowin...
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