Italy should face disciplinary action after “serious non-compliance ” with EU fiscal rules, the European Commission said.
The EU’s executive arm made the announcement in a report containing a damning opinion on Italy’s draft budget plans for next year, which include generous giveaways like a basic income for the poor and tax breaks for others.
The report calls on the Council of the EU to green light a process that could see the Commission smack Rome with a so-called excessive deficit procedure (EDP) — a disciplinary measure for countries that breach the bloc’s budget deficit and public debt rules.
“This step we take today is the logical and unavoidable consequence … of the Italian decision … not to revise [its budget plans],” said the Commission’s chief for economic affairs, Pierre Moscovici. But he was also quick to extend an olive branch, tweeting: “Our door remains open to dialogue with Italy.” [...]
The Commission’s report concludes that “Italy’s large public debt is a major vulnerability for the Italian economy and decisively reducing it should remain a priority in the best interest” of the country. It went on to criticize the government’s spending plans, which are “not projected to comply with the debt reduction benchmark in either 2018 or 2019.” [...]
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Remarks by Vice-President Dombrovskis at the European Semester Autumn Package press conference
Remarks by Commissioner Moscovici at the European Semester Autumn Package press conference
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