#FactOfTheDay 24/10/2018 – The European Commission asks Italy to modify its budget draft

#FactOfTheDay 24/10/2018 – The European Commission asks Italy to modify its budget draft

For the first time ever, a Member State has been told by the European Commission to revise its budget plan. 

The reason behind this action is Italy’s will to raise its spendings when its government debt already is the second highest in the EU. As such, the Commission deemed that this first draft does not comply with its recommendations.

The new government of Italy wanted to fulfill key promises of its last election campaign. This includes measures such as the introduction of a minimum income for the unemployed, tax cuts and removing extensions to the retirement age, all in order to reduce poverty. The problem is that the budget deficit targeted by the government is three times higher than the one of the previous government. Valdis Dombrovskis, the Commission Vice-President for the Euro, said : « For the first time the Commission is obliged to request a euro area country to revise its draft budgetary plan but we see no alternative than to request the Italian authorities to do so. »

It could be argued that Italy’s target of 2.4% of the GDP is below the 3% deficit limit under the Eurozone rules. The Italian government considers these measures necessary to kick-start growth and won’t back down on its decision. As a consequence, this situation might cause another tumult in the political landscape of the European Union.

Güray Serbest

For further information : 

BBC Website : https://www.bbc.com/news/world-europe-45954022

Léon De Tombeur

Diplômé en Histoire à la Sorbonne et en Relations Internationales à Lyon III, je me suis notamment intéressé à la politique internationale de l’Union européenne. Animé par un désir de contribuer à l’Europe afin de la rendre plus sociale et respectueuse de l’environnement, je me suis rendu à Bruxelles afin de travailler de concert avec les institutions européennes. Ma spécialisation tend davantage vers le domaine de la défense et de la sécurité, j’ai réalisé mon mémoire de fin d’études sur le futur de la défense anti-missile du continent européen. C’est pourquoi j’ai choisi le portefeuille de la coopération judiciaire et policière.

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