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The Italian government is reportedly bracing for the European Commission to reject its budget proposal on Tuesday. If this is the case, it will mark the first time in the history of the EU that the European Commission has had to ask a member state to revise a draft budget.
Italian Aiming For Deficit Target of 2.4% of GDP
The proposal submitted by the Italian government last week outlines plans to increase spending while cutting some taxes, which in total would widen the country’s budget deficit to 2.4% of GDP, well above the prior 1.8%. While the 2.4% target is still within the EU limit of 3%, it does stand contrary to EU rules which outline that heavily indebted nations should focus on balancing their budget instead of increasing spending. At 130% debt to GDP, Italy is the second most indebted member state in the EU, behind Greece only.
The Italian government has come under heavy criticism from political leaders in the EU, Jean-Claude Juncker of the European Commission and also from ...
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