- Home
- Business
- UPDATE - Italian Draft Budget for 2019 Flouts EU Financial Stability Rules - Commissioner
UPDATE - Italian Draft Budget For 2019 Flouts EU Financial Stability Rules - Commissioner
Faizan Hashmi Published November 21, 2018 | 09:30 PM
BRUSSELS (UrduPoint News / Sputnik - 21st November, 2018) Italy's budget plan is in breach of EU's fiscal regulations and puts the country's economy at risk of instability, the EU commissioner in charge of financial stability said Wednesday.
The European Commission recommended in July that Italy cut its structural deficit by 0.6 percent of domestic output in 2019. Instead the deficit is set to grow by around 1 percent of GDP.
"Italy's draft budgetary plan is in a particularly serious noncompliance with the Council's recommendation," Valdis Dombrovskis told reporters.
Italy's plans for extra borrowing instead of fiscal prudence are of common concern to all euro area countries, which must all play by the same rules, he said.
"With what the Italian government has put on the table, we see a risk of the country sleepwalking into instability," he warned.
The draft budget, the commissioner predicted, would have a negative impact on growth, reduce the banks' ability to lend and keep the economy vulnerable to shocks.
"We cannot see how perpetuating this vulnerability will increase economic serenity. Instead, I believe it could result in more austerity down the road," the official said.
Dombrovskis stressed, however, that the Commission had not closed the door on Italy and would try to avert instability in the euro area's third largest economy.
"We stand ready for a dialogue with the Italian authorities, but we think that this situation needs to be addressed," he concluded.
The European Commission predicts that Italy's debt will remain at around 131 percent of GDP in the next two years. That is an average of 37,000 Euros ($42,000) in debt and 1,000 euros in debt servicing costs per inhabitant per year.
Related Topics
Recent Stories
Attaullah Tarar’s success notification from NA-127 challenged
PSX witnesses positive trend today
PM Shehbaz meets CJP Isa to address IHC judges’ concerns
Pakistan vows to bring to justice perpetrators, abettors of Bisham terrorist att ..
May 9 riots: SC allows conditionally to military courts to deliver reserved verd ..
Interior Minister arrives in Peshawar after Shangla suicide attack
OPPO Reno 11 F 5G: Setting New Records as Pakistan's Most Beloved Smartphone Lin ..
PCB dismisses FICA's claims of unpaid dues in PSL
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
Today Gold Rate in Pakistan 28 March 2024
Niger says US to submit plan to 'disengage' troops
Venezuelan opposition registers unknown poll contender after obstacles
More Stories From Business
-
Development of SMEs govt's top priority: Rana Tanveer
26 minutes ago -
PSX witnesses positive trend today
1 hour ago -
Gold rates up by Rs.1,500 to Rs.231,000 per tola
2 hours ago -
Pakistan earns US $419m from travel services' export in Jul-Jan
3 hours ago -
Tokyo stocks drop on ex-dividend day
4 hours ago -
Exchange rates for currency notes
4 hours ago
-
Foreign exchange rates
5 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
7 hours ago -
Today Gold Rate in Pakistan 28 March 2024
7 hours ago -
Tokyo shares sink on ex-dividend day
8 hours ago -
Stock markets mostly rise, yen hits 34-year low
17 hours ago -
Asian markets mixed as traders assess latest rally, eye data and earnings
18 hours ago