‘Clarifications’ sought from Italy in budget row

BRUSSELS: European Affairs Commissioner Pierre Moscovici will deliver a letter to the Italian government in Rome on Wednesday, asking for clarifications on a 2019 budget that violates EU spending rules, an official said.

The request by the executive arm of the European Union launches a months-long process that could see the populist government in Rome hit with unprecedented sanctions for breaking commitments to the EU.

Underlining the sensitivity of the matter, the letter will be delivered by Moscovici in person to Italian Finance Minister Giovanni Tria in Rome, before a joint press conference by the two officials. The officials will meet as EU leaders in Brussels discuss the eurozone, with harder line speakers — most notably from the Netherlands — expected to denounce Italy’s decision to go on a public spending spree.

On the sidelines of the summit, Italian Prime Minister Giuseppe Conte met Dutch Prime Minister Mark Rutte and Chancellor Angela Merkel of Germany, where criticism of Rome’s populist government also runs high.

“This is not the budget the Commission expected. It is understandable that there are reactions. I expect some critical observations,” Conte said in Brussels.

In a tweet following the meeting, Rutte said he expressed to Conte his concerns regarding Italy’s budget plans and offered his “full support” for the commission to apply our “common obligations.” Italy’s coalition government submitted its draft 2019 budget to the European Commission on Monday that announced a big wave of extra spending to fullfil electoral promises.