Maneuver 2020, the EU letter to Italy: "Does not respect the agreements on debt reduction"

Bad news for Italy. The EU has sent a letter to Rome, with which it asks for an additional explanation on the meaning of the Italian budget, which is under discussion at this time. The Italian plan, writes Brussels, "does not respect the 2020 debt reduction target. The draft envisages a worsening of the structural deficit by 0.1% of GDP," which lacks the recommended structural adjustment of 0.6% ", and "an increase in expenditure of 1.9%, which exceeds the recommended reduction of at least 0.1%". Elements that "appear to be out of line" with the recommendations, pointing to a risk of significant deviation "from the" recommended effort ".

In the document sent to Prime Minister Conte, the EU takes note of Italy's request in the Dbp (the budgetary planning document, ed) to make use of flexibility under the Stability and Growth Pact to take into account the budgetary impact of unforeseen events. The European Commission, and subsequently the Council, will carry out a thorough assessment of the application, taking into account the eligibility criteria ". The European Commission writes this in a letter sent to Italy on the Budgetary Planning Document sent by Rome.

Time is running out. By tomorrow, Wednesday 23 October, the European Commission expects new clarifications from Italy "to reach a final evaluation" on the maneuver. "Taking into account the debate held at the Eurogroup meeting of 9 October on the economic situation and budgetary policy in the euro area, the European Commission seeks to continue a constructive dialogue with Italy to arrive at a final evaluation", is written in the letter sent by the EU Commission.

This article is being updated