European Commission could sanction Italy for fiscal slippage

The budget of Italy for 2019 was considered this Thursday as exaggerated. The authorities of the European Commission foresee sanctions for breaching debt reduction

During the recent European Summit held in Brussels, the European Commissioner for Economy, Pierre Moscovici said that the organization could sanction Italy for failure to pay the debt and a budget for 2019 considered exaggerated.

The term used was “fiscal slippage”. Due to the fact the Italian government could be penalized severely, since they are not controlling their expenses and the deficit is significant. From Brussels they have indicated that the draft budget puts at risk the stability of all member states.

The incident is generating strong discontent and concern in the European Union, within which there has been talk of expelling Italy if the government does not assume a sensible and negotiating position.

The Brussels-based institution issued a letter Thursday to Giovanni Tria, Italy’s finance minister, as a warning about the draft budget for 2019, since it would mean a breach of the budgetary policy obligations set out in the European standards.

The deadline to respond to this letter is next Monday, October 22nd. In case the commission still considers the draft budget to be risky, Italy will have two weeks to introduce a new budget.

M.Pino

Source: CNBC

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