Italy expects the EU budget to be rejected on Tuesday: source

Italy expects the EU budget to be rejected on Tuesday: source https://www.eresviral.com/wp-content/uploads/2018/10/Italia-espera-que-el-presupuesto-de-la-UE-sea-rechazado-el-martes-fuente

Italy expects the EU budget to be rejected on Tuesday: source







MILAN (Reuters) - The Italian government expects the European Commission to decide for the first time on Tuesday to ask a member state to review its budget proposal, a government source said on Sunday. 











Italian deputy Luigi Di Maio speaks at the open-air rally of the 5-Star Movement at the Circo Massimo in Rome, Italy, on October 21, 2018. REUTERS / Max Rossi





The Commission described as an unprecedented breach of EU fiscal rules Italy's budget plan 2019, which aims to raise the deficit to 2.4 percent of domestic production next year from 1.8 percent in 2018. 

Since receiving reinforced powers in 2013 on the budget plans of the member states, the Commission has never asked a country to present a revised budget. 

Italy's public debt of 2.3 trillion euros (2.65 trillion dollars), one of the largest in the world, makes the country vulnerable and a potential source of contagion for other countries in the euro zone. 

Investors have lost 67 billion euros in Italian bonds since a populist government was formed in May, sending the risk premium Italy pays for a safer German paper to a maximum of 5-1 / 2 years of 3.4 percentage points.  

The source said Economy Minister Giovanni Tria and Prime Minister Giuseppe Conte had unsuccessfully pushed for a reduction of the deficit target for 2019 at a cabinet meeting on Saturday. 

The source did not rule out that an agreement could be found to reduce the deficit target during a period of three weeks of negotiations with Brussels that will follow the rejection. 

Although the decision was expected on Tuesday, the source said it could not be announced the same day. 

When asked for a comment, a spokesman for the Commission said that the Commission had expressed its "serious concerns" about the draft budget to the Italian authorities, seeking clarifications before noon on Monday to facilitate an evaluation. 

Earlier on Sunday, Deputy Prime Minister Luigi Di Maio said the government was working on the letter he would send to the Commission on Monday, adding that he expected a quick reaction. 

Di Maio, who leads the 5-star anti-government movement, told RAI state television that he hoped the explanations that Rome would provide "over a long process of discussion ... could lead the Commission to share the goals we have set for ourselves ". 









Italian deputy Luigi Di Maio speaks at the open-air rally of the 5-Star Movement at the Circo Massimo in Rome, Italy, on October 21, 2018. REUTERS / Max Rossi



After facing popular anger over the austerity measures adopted by Italy in response to the Eurozone crisis of 2011-2012, Italy's governing coalition, which also includes the extreme right-wing League, wants to reduce the retirement age and provide a basic income for the poor. 

On Friday, the credit rating agency Moody's lowered Italy's debt to a category higher than scrap due to concerns about the government's budget plans. 

NO PLAN B 

Di Maio said he expected the Commission to take into account Italy's strengths, such as low private sector debt and high household wealth, which Moody cited as one of the reasons behind a "stable" rating outlook. 

He joined other members of the government in an effort to dispel concerns about Italy's membership in the euro.     

"We understood from the conversations with people of the ECB (European Central Bank) and the markets, that is, of the investors, that the (yield of the bond) shot up because there is concern that this government wants to leave the euro or the Union European, "Di Maio said. 









Italian deputy Luigi Di Maio speaks at the open-air rally of the 5-Star Movement at the Circo Massimo in Rome, Italy, on October 21, 2018. REUTERS / Max Rossi



"I want to say it here, and there will be other solemn occasions to reiterate it as a government and political party, ... there is no Plan B (to leave Europe) but only Plan A that will change Europe". Di Maio said. 

"As long as I am the head of this movement and a minister of this government, I will always guarantee that Italy stays within the euro and in Europe," he added. 

The ECB declined to comment on Di Maio's comment on talks with central bankers. 

Di Maio said Italy had the opportunity to demonstrate that public debt could be reduced by "investing in social rights" and triggering major changes across Europe. 

He said that the 5-Star, founded by the comedian Beppe Grillo, was working to present in January-February a program that brought together similar grassroots movements from other European countries with the aim of "returning a heart and humanity to the European institutions" . $ 1 = 0.8686 euros) 

($ 1 = 0.8686 euros) 





Additional reporting by Robin Emmott in Brussels, Edited by Adrian Croft





Our Rules:The principles of trust of Thomson Reuters.

        .

  !function(f,b,e,v,n,t,s)

  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?

  n.callMethod.apply(n,arguments):n.queue.push(arguments)};

  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';

  n.queue=[];t=b.createElement(e);t.async=!0;

  t.src=v;s=b.getElementsByTagName(e)[0];

  s.parentNode.insertBefore(t,s)}(window, document,'script',

  'https://connect.facebook.net/en_US/fbevents.js');

  fbq('init', '369524843414444');

  fbq('track', 'PageView');

    .


SOURCE LINK ERESVIRAL.COM 
https://www.beviral.online