More Global Risks as the Battle Between Italy and the EU Begins Again
Italy is aiming at increasing the deficit above 3% this year and the EU has opened disciplinary procedures today
Skerdian Meta•Wednesday, June 5, 2019•1 min read
Towards the end of last year, we saw quite a commotion between the EU and Italy. Italy’s debt is pretty high at 130% of the county’s GDP and they were aiming for the deficit this year to be around 2.4% of the GDP. But after the clash with the EU they pulled it lower to around 2%. Although, that was just on paper, because the reality is harsher. The economic weakness continues and now the Italian government wants to increase the deficit above 3% which is the ceiling by EU rules, and which was broken on France’s case. The European Commission has started the disciplinary procedure on Italy today. Below are the comments from the EU:
European Commission Document
- Italy’s growing debt justifies the launch of a disciplinary procedure
- Warns about Italian debt increasing due to ‘snowball effect’
- Says Italy is backtracking from structural overhauls, pension reform
- Also says Greece’s fiscal measures are a cause for concern
EU’s Dombrovskis
- Italy hasn’t complied with debt criterion
- Excessive debt procedure (EDP) is warranted for Italy
- Recent Italian measures have damaged public finances
- Recent policy choices have been damaging for the Italian economy
- Says that Italy’s growth has almost come to a halt
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
ABOUT THE AUTHOR
See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
What then would be the effect of this on EURUSD and crude oil ( WTI)