“There is no risk of contagion from the Italian budget crisis in the European Union. The euro zone is not ready to face a new economic crisis, ”French finance minister Bruno Le Maire told the Le Parisien newspaper.
The European Commission rejected Italy's 2019 economic maneuver earlier this week for breaking EU rules on public spending, and asked Rome to present a new one within three weeks, the alternative being the infringement procedure .
"We do not see any contagion in Europe: the European Commission has offered Italy a side, I hope Italy will take this hand", reported Le Maire.
"But is the euro zone sufficiently ready to face a new economic or financial crisis?" My answer is No. It is urgent to do what we have proposed to our partners to have a solid banking union and an investment budget in the euro area “.
Eurozone officials said Rome's unprecedented back and forth with Brussels will delay the reform process and likely expand it forever.
Le Maire also said French banks with branches in Italy had issued loans to companies and households for a total of € 280 billion (£ 248,73 billion). "This is a substantial amount of money."