Trouble In't Mill24 Oct 2018 06:30
Reported earlier today, almost exactly as Able has been pointing out, on Alliance News:-
Alliance News Detail
European Commission Rejects Italian Budget, Three Weeks To Revise
[ 23 Oct 2018 18:11 ]
LONDON (Alliance News) - The European Commission has taken the unprecedented step of ordering Italy to revise its public spending plans.
In a move that escalates a month-long stand-off, the EU said the populist government's budget for next year is out of line and breaks earlier promises to lower public debt.
Italy's debt load is the second-highest in Europe, after Greece, and there are worries that losing control of spending could rekindle financial turmoil in Europe.
The populist Italian government says the sharp increase in spending is needed to jump-start growth after years of malaise.
"We see no alternative but to request the Italian government to revise its draft budgetary plan," EU Commission vice president Valdis Dombrovskis said.
Italian deputy prime minister Matteo Salvini was quick to warn off the EU.
He said: "No one will take one euro from this budget."
The confrontation laid bare the fundamental problem within the eurozone where 19 EU nations share the same currency, yet governments maintain autonomy over spending priorities and the EU has been reluctant to enforce spending limits.
Since the euro economy can be destabilised when one member state loses control of its finances, like Greece did a decade ago, the other nations want to have some say over excessive spending, especially when it concerns the region's third-biggest economy. -------------- There is more but I left it.
Yours, Max.