As expected, Europe rejected Italy's financial maneuver for 2019. Particularly disputed points are the pension reform, citizenship income and the consequent increase in public debt.
The European Commission has given the Italian Government three weeks to provide clarification on the draft budget law 2019, formalizing the request to resubmit a draft budget that respects the recommendations expressed by the European Council and fulfills the commitments made by Italy.
"The Italian government sends the plan as soon as possible does not take advantage of the three weeks in their entirety" said Pierre Moscovici, commissioner for economic affairs, who spoke during the press conference explaining that "The Government did not respond to any of the three points of the letter of Brussels on deficit, debt and growth prospects, these are not borderline nuances, but a clear, clear-cut, recognized and for some even claimed deviation ”.
Commissioner Dombrovskis of the same opinion, commented explaining that the maneuver presented by Italy goes "openly and consciously against commitments, and forces the EU commission to review the infringement procedure for excessive debt".
The decision of the European Union government was already in the air given the content of the letters exchanged in recent days by the European executive represented by Commissioners Dombrovskis and Moscovici, and the Italian Treasury Ministry. In summary, the European Commission has requested a new Budget Planning Document, considering the current maneuver a "significant deviation" from the trajectory agreed in the previous legislature on public accounts, a change of course "not admissible" for a country like ours burdened by a public debt that weighs over 130% of GDP.
Giuseppe Conte responds to the commission by defending the budget law, considering it an "indispensable maneuver to bring Italy back to growth" who also stated that "There is no plan B" explaining how in the budget bill there is a ceiling on deficit and that the Government is ready to operate a new "spending review", if necessary, but that the substance of the maneuver will not change.