Italy defiant on budget plans, deficit

Italy defiant on budget plans, deficit

Italian Minister of Finance Giovanni Tria. (File Photo: Xinhua/Ye Pingfan/IANS)

Rome, Nov 14 (IANS) The Italian Economy Minister Giovanni Tria has informed the European Commission that his government will maintain the General Budget for 2019 despite an increased deficit of 2.4 per cent.

He argued "we are convinced that this is the budget that will restart the country" and assured that the deficit would not be surpassed, Efe news reported.

"The priority is the need to relaunch growth prospects, to fill the lasting gap between the current level of GDP which recorded before the onset of the economic crisis, as well as to face the slowing of the cycle," said Tria.

The Italian government was responding late on Tuesday, within the deadline set at midnight on November 13, to the demands of the European Commission (EC), which earlier on October 23 rejected their first draft due to increased debt forecast.

In a letter to EC Vice-President, Valdis Dombrovskis and Economic Affairs Commissioner Pierre Moscovici, Tria insisted that after "careful" consideration of their recommendations, the government's position "remains fully valid".

The government alliance formed by the Five Star Movement (M5S) and the far-right League has proposed an expansive General Budget for 2019, for which the deficit was estimated.

He also confirmed the commitment to "maintain public finance accounts" and indicated that the deficit level of 2.4 per cent of GDP will not be surpassed.

--IANS

in/

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)