Italy Budget "Not Compatible With Commitments That Exist In The EU"


"It is my personal opinion that based on the figures it is very likely that we have to ask Italy to correct the draft budget", Oettinger said on Twitter.

"If we were to accept (...) the slippages compared to the european rules, it is true that in some countries, this would have the outcome of we to cover of insults and invectives, because my Committee and myself, we are accused by several governments in Europe (...) have been too flexible for Italy", he insisted. "Italy is a founding European Union member and a net contributor", he added, according to the ANSA news service. The budget proposes increasing both Italy's overall government debt and its deficit in the short run, pushing the deficit as high as 2.4% of GDP over the coming years. Italy submitted the draft budget at the last minute on Monday night.

"It's with concern that we are looking at Italy, especially because of its budget".

Salvini on Wednesday called the reported drop-off of the two migrants in a wooded area by two French paramilitary gendarme police - whose van then allegedly drove back across the border at high speed - "an unprecedented affront to our country" and "an global disgrace". "Investment in Italy, as a percentage of GDP, in the last few years has been below European Union average and has not really picked up from the crisis", he told CNBC's "Capital Connection". "That said, the French budget does not breach the expenditure benchmark rule; moreover, France can justify its deviation from the structural adjustment path on the basis of the structural reforms it is implementing".

While attracting global criticism, the budget is popular with Italians.

On the other hand, if it takes a hard stance and attempts to force the populist coalition into changing its budget, that could risk further alienating Salvini and his colleague, Luigi Di Maio, the leader of the Five Star Movement.

Italy's far-right Interior Minister Matteo Salvini on Tuesday hit out at President Emmanuel Macron after French police were caught committing the "unprecedented offence" of dumping migrants in Italian woods.

In May, a leaked report, published in part by the Huffington Post, showed that both parties discussed a commitment to leave the euro prior to entering into government, before abandoning that pledge. While Rome promises that the measures will generate so much economic growth that Italy's deficit will decrease starting in 2020, Brussels and financial markets are skeptical.