Italy refused to meet European Commission’s demand on revising its budget. Instead, the coalition government said that 2019 budget deficit target will be maintained at 2.4% of GDP. Growth forecast was also kept unchanged at 1.5%. The government statement noted that “we have the conviction that this is the budget needed for the country to get going again.” Nevertheless,the government pledged to beef up asset sales and monitor spending closely.
The European Commission have rejected Italy’s draft budget plan and requested re submission by November 13, yesterday. European Commission President Jean-Claude Juncker warned earlier this week that “the Italians are moving away not just from what they have promised us but also away from the minimum requirements of the stability pact.”