Recall Italy’s proposed budget, which defied Brussels by having a larger deficit relative to its GDP than EU budget rules allow. I decried that budget then, and I stand by that disdain.
Italian Economy Minister Giovanni Tria has told the European Commission that Italy will raise its deficit to 2.4% of gross domestic product (GDP), defying eurozone budget rules. In a letter sent to Brussels in response to a formal warning from the EU.
Brussels continues to not like the budget.
[T]he EU’s European Economic Affairs Commissioner, Pierre Moscovici, reminded Italy that its structural deficit was “way too high.” He told the France Inter radio station that he did not want a “crisis with Italy” over its planned deficit-raising budget and still hoped for “constructive dialogue.”
The Italian people, though, favor the budget by a nearly 3:2 margin; this is quite a strong consensus as such things go in Italy. From that, I say that the Italian government should stay the course, my concerns about the budget itself notwithstanding. This is a question of national sovereignty vs the requirements of an international body.
The budget violates EU rules? Yep. Maybe Italy should start giving consideration to leaving the European Union.