The European Commission Rejected the Draft Budget of Italy: the Sanctions Procedure May Begin
OREANDA-NEWS The European Commission rejected the revised draft budget for Italy. According to the EC, the new document does not comply with the Council's recommendations of 13 July.
The European Commission rejected Italy's revised draft budget for 2019.
"After assessing the revised budget of Italy, the European Commission confirms the existence of a particularly serious inconsistency with the Council's recommendations of July 13," the document says.
According to European Commissioner Jean-Claude Juncker, in the coming weeks against Italy may begin an investigation because of the draft budget.
As Deputy Italian Prime Minister Matteo Salvini said after the European Commission's rejection of the country's budget, the budget objectives specified in the document are valid, and Italy does not intend to discuss them.
"We are confident in the figures in our budget. We will talk about this in a year," - quoted policy Agency Reuters.
Dissatisfaction with the European Commission caused Rome's plans for costs and loans. According to the EC, this may lead to another debt crisis, which will damage the entire European Union.
The European Commission (EC) may in the coming weeks to start a sanctions procedure against Italy because of the draft budget of the country, which does not meet EU standards. This was stated on Wednesday at a press conference in Brussels, the European Commissioner for financial and economic Affairs Pierre Moscovici.
As stated in the press release of the European Commission, it "confirmed the presence of particularly serious inconsistencies with the Pact of stability and growth" of the draft budget of Italy for 2019. This Pact assumes that the country's budget deficit should not exceed 3% of its GDP, and the national debt – 60% of GDP.
"Italy does not comply with the criteria of debt, and therefore the procedure is justified. Now the member States have two weeks to say whether they agree with the assessment of the European Commission or not. And after that, the European Commission will prepare a procedure and a recommendation for correction," he said.