Italian budget still not in order according to EC

Photo by Christian Wiediger on Unsplash

Italy's budget may conflict with the European Union's fiscal rules. The European Commission has asked the Italian Finance Minister Roberto Gualtieri for clarification.

The budget is said to be inadequate in terms of lower expenditure, as the EU previously prescribed to Italy. Earlier this year, Brussels even threatened with criminal sanctions if Italy did not adhere to the financial frameworks. There is now a less anti-European government in Rome.

The letter is a warning for the Italians. At the end of September, anonymous insiders stated that Italy would work on a budget that would comply with all European rules. They would use a cautious approach to build credibility.

The European Commission warns six euro countries because of their draft budget. Belgium, Italy, France, Spain, Portugal and Finland are in danger of not complying with the rules of the Stability and Growth Pact. According to budget figures, Paris is doing nothing to reform public finances and Finland is spending more and more. Belgium, Spain and Portugal cannot yet submit a full budget due to elections earlier this year.