The Eurogroup gave Italy recommendations on fiscal policy

© RIA Novosti / Alexei Vitvitskiy in fotobanka the European Council in Brussels. Archival photoThe Eurogroup gave Italy recommendations on fiscal policy© RIA Novosti / Alexei Vitvitskiy the image Bank

The Council of Ministers of economy and Finance of the Eurozone (Eurogroup) recommended that Italy take the necessary steps to bring the budget for 2019 in accordance with the Pact of stability and growth of the EU, is spoken in the message of the Council.

It recalls that on 21 November the EC noted the presence of «serious discrepancies» of the draft budget with the July recommendations of the EU Council.

«We support the European Commission’s assessment and recommend that Italy take the necessary measures to comply with the stability Pact and growth,» — said in a release.

The Eurogroup supports the dialogue between the EC and Italian authorities on the country’s budget.

EK on November 21 presented the evaluation of the draft budgets of all Eurozone States, including Italy. The Commission noted the serious mismatch between the draft financial plan of the country in 2019, the requirements of the stability Pact and growth, which requires EU countries to reduce the size of the budget deficit to 3% of GDP and public debt to 60% of GDP.

The EC was reminded that the Council of the EU in July recommended Italy to reduce the structural deficit by 0.6% of GDP in 2019. However, the November assessment by the European Commission of the draft budgetary plan of the country suggests that the structural deficit of Italy will grow by about 1% of GDP next year. Therefore, the EC considered that the draft budgetary plan of Italy is seriously not in line with the recommendations of the Council of 13 July.

The European Commission also evaluated the performance of Italy’s demands to reduce public debt and came to the conclusion that they are not enforced. Therefore, the Commission considers justified, the introduction in relation of the so-called procedure of excessive budget deficit (EDP) of debt. This procedure includes the process of adjustment of the budget indicators.

The decision on whether to initiate such a procedure against Italy, upon request by the EC should be adopted in the future Ministers of the EU countries.

The Eurogroup gave Italy recommendations on fiscal policy© Vitaly Policyfile here