‘We Are a SOVEREIGN State’ Italy DISMISSES EU Meddling as Budget Row Intensifies

• ‘We Are a SOVEREIGN State’ Italy DISMISSES EU Meddling as Budget Row Intensifies
  by PAUL WITHERS, https://www.express.co.uk/
  ITALY has emphatically dismissed the EU’s rejection of its controversial budget plans, insisting it will always be a “sovereign state”.
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  Last week, the bloc’s finance chief Pierre Moscovici rejected the plans, declaring “public debt is the enemy of the people” as he justified their action against Italy‘s populist government. Brussels claims Rome’s plan present a “serious deviation” from recommendations set by the European Council in July. The Commission asked Italy to submit a revised draft budget for 2019 within three weeks. Brussels bosses argue the proposal poses “serious non-compliance” with the bloc’s tight fiscal policies.
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  Italy’s populist government, made up of right-wing Lega and anti-establishment Five Star Movement, are planning to run their budget at 2.4 percent GDP as of 2019. The country’s GDP next year is forecast to be €1.86 trillion, with the planned deficit coming in at €44.23 billion. Last year’ Italy’s budget deficit was €39.691 billion, representing 2.3 percent of GDP of just over €1.716 trillion.
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  It has a debt-to-GDP ratio of 130 percent, making it the eurozone‘s second most indebted country behind Greece. If Rome defies its orders from Brussels over its budget plans, officials could begin an “excessive deficit procedure”, leading to sanctions of 0.5 percent of annual GDP or €9billion. The European Union has told Italy their deficit target of 2.4 per cent of GDP is too high and demanded the country make a change before approving their budget.
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