European Commission Vice President Valdis Dombrovskis said that Italy will need a “substantial deficit correction in 2019 and 2020”. He told La Repubblica daily a day after the Commission opened the way to so called “Excessive Deficit Procedure” on Italy. Dombrovskis also warned the coalition government’s planned tax cut reform could be very expensive and risks further deteriorating Italy’s public finances.
Economics Commissioner Pierre Moscovici told the European affairs commission of the lower house of France’s parliament, “it’s up to Italy to bear the burden of proof that it’s reducing its deficits and debt.” He reiterated that “my door is open to talk, to listen and to take note.”
Italy’s Deputy Prime Minister Luigi Di Maio insisted “there should not be a budget correction.” The coalition will start negotiations with EU to avoid disciplinary proceedings over its rising debt. However, Di Maio emphasized that such negotiations should be led by politicians, not “bureaucrats”.
