Italy promises to obey EU fiscal rules as debt rises | The Daily Star
12:00 AM, June 02, 2019 / LAST MODIFIED: 01:15 AM, June 02, 2019

Italy promises to obey EU fiscal rules as debt rises

Italy has vowed to respect the European Union’s fiscal rules in its next budget despite deteriorating public finances and a pledge by the anti-austerity government for swingeing tax cuts.

Responding to a letter from the EU Commission questioning why Italy’s already huge debt grew last year, Economy Minister Giovanni Tria blamed an economic downturn and said additional belt-tightening measures would make things worse. “I wish to reiterate that the 2020 budget will be SGP (Stability and Growth Pact) compliant,” Tria said in his letter to Brussels, published late on Friday.

The drop in global trade and manufacturing activity in the second half of 2018 was abrupt and deeper than expected, he said, and this had prevented Rome from fulfilling the EU requirement to shrink debt.

“I believe that the new government followed a responsible and prudent approach,” he added.

“At any rate, given continuing high unemployment and near-deflationary conditions, the introduction of restrictive fiscal measures would have been counter-productive.”

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Grameenphone:
Type START <space> BR and send SMS it to 22222

Robi:
Type START <space> BR and send SMS it to 2222


Banglalink:
Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News

Top