European Commission rejects Italy’s 2019 budget

DPA, 21ST NOVEMBER, 2018-The European Commission has rejected Italy’s 2019 spending plan for contravening EU fiscal rules, it announced on Wednesday.

The decision opens the door for potential punitive action and even fines. “It is with regret that today we confirm our assessment that Italy’s draft budget plan is in particularly serious non-compliance,” Commission Vice-president Valdis Dombrovskis said.

Based on the commission’s analysis, he added, a sanctions process known as an excessive deficit procedure (EDP) is “warranted” against Italy for failing to reduce its public debt, which currently stands at more than 130 per cent of gross domestic product (GDP).

The EDP is a process that sets fiscal deadlines and targets for member states in breach of eurozone fiscal rules. If EU member states agree with the commission, the EDP could be launched against Italy.