EU Commissioner Says New Budget Deficit Target Offered By Italian Government Insufficient

European Commissioner for Economic and Financial Affairs Pierre Moscovici said on Thursday that the Italian government's recent proposal to cut the deficit target to 2.04 percent of the national GDP for next year was the right move but not enough to placate Brussels.

MOSCOW (UrduPoint News / Sputnik - 13th December, 2018) European Commissioner for Economic and Financial Affairs Pierre Moscovici said on Thursday that the Italian government's recent proposal to cut the deficit target to 2.04 percent of the national GDP for next year was the right move but not enough to placate Brussels.

On Wednesday, Italian Prime Minister Giuseppe Conte proposed to cut Italy's deficit target for 2019 from 2.4 percent to 2.04 percent of the national GDP in order to avoid an infringement procedure by the EU.

"It is a step in the right direction but we are not there yet, there are still steps to be taken, perhaps on both sides," Moscovici was quoted as saying by the Financial Times newspaper.

In October, the commission rejected Italy's draft 2019 budget, saying that it was not in line with EU rules on public spending. In November, Italy submitted a new draft with only a few changes that was also rejected, with the European Commission reaffirming its stance that the plan contained "serious non-compliance" with the European Council's recommendations on Rome's economic policy.

While Italy's budget deficit falls within EU limits set by the the Stability and Growth Pact, which states that the deficit for EU members must not exceed 3 percent of their GDP, the country must also have a public debt that is below 60 percent of its GDP Italy's debt exceeded 130 percent of its GDP in 2017.