Italian Deputy Prime Minister Di Maio on the Budget: ‘We will not Admit. The Italian Deputy Prime Minister Luigi di Maio put his heels in the sand Tuesday in the discussion on the budget deficit of his country, despite pressure from Brussels to revise the budget.
In the current plans of the Italian government, the budget deficit is 2.4 percent.
The budget led to unrest in both EU Member States and financial markets.
“We will not let and cut our budget deficit by 2.4 percent, that should be clear,
and we will not change our position for millimetre,” Di Maio stated in an interview.
The figures on European financial markets have been in the red all day because of Italy.
Tuesday morning the head of the Italian lower house said that the euro “is not enough” to solve the debt problems of Italy.
Di Maio then tried to conciliate the reaction of the financial markets by saying that Italy does not want to leave the eurozone.
Effect of the budget on debt leads to unrest
There is unrest about the Italian budget, because Italy’s towering debt may rise further as a result of budgetary plans.
The European Commission also considers that Italy requires to do more to reduce the deficit, instead of increasing it further.
The debt now lies at 132 percent of the Italian gross domestic product (GDP).
According to European fiscal rules, public liability may not exceed 60 percent of GDP.
The budget deficit may not exceed a maximum of 3 percent of GDP.
Italy has to present its budget for next year in Brussels in October.
The European Commission can theoretically refuse a budget from a Member State, but that has never happened before.
Stock exchanges throughout Europe are at a standstill around noon.
The euro also loses value against the dollar. The euro is worth $ 1.1516 Tuesday afternoon, against $ 1.1565 a day earlier.