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The Italian government has expressed its willingness to abandon its position against the European Commission (Reuters)
Italian stocks surged on Monday as the Italian government's growing signs of a downturn put its budget deficit plans on the way to punitive measures by the European Union. A government source said yesterday that the ruling coalition was planning to reduce next year's budget deficit target to 2 percent of GDP, from 2.4 percent, as in the previous year. draft budget.
Italian Deputy Prime Minister Luigi de Mayo said the Italian government was determined to reform, but that a dialogue with the EU could be initiated on the budget deficit. "If we are to slightly reduce the deficit forecast in the negotiations, it is not important for us," said De Mayo, leader of the five-star movement, quoted by Bloomberg, in an interview with the radio yesterday. "The problem is not the conflict with the EU on the deficit of 2.4%, but the important thing is that no one is excluded from the key actions," he said.
According to reports received yesterday, a League official, one of the two parties representing the Italian government, said the administration was planning to set a new deficit target of over 2.1 percent of GDP. . The European Commission announced that it rejected the Italian government's spending plans in 2019, in contradiction with the European Union's financial rules, which provided for a budget deficit of 2.4% and a growth rate economic 1.5% next year.
The European Commission, the executive body of the European Union, has proposed a lawsuit against Italy, which could result in heavy fines due to a particularly serious "non-compliance" "fiscal rules of the euro area.
Italian Deputy Prime Minister and Interior Minister Matteo Salveni said Sunday that Italy could give up its position in a clash with the European Commission in adjusting its controversial deficit plans.
For the first time, Salfini, leader of the far-right party, which usually takes the most conflictual positions with Brussels, made it clear that an adjustment of 2.4% was not illegal. "I do not think anyone insists that if the budget helps the country grow, the deficit could reach 2.2 or 2.6 percent," Salvini said in an interview with the Adrencronos news agency.
It's a change of attitude since Saturday night, when Salveni said there may be no retirement. At that time, he also referred to the need to "accurately assess the timing and cost" of budget procedures.
The easing came after a dinner on Saturday in Brussels between Italian Prime Minister Giuseppe Conte and European Commission President Jean-Claude Juncker. "I am convinced that the dialogue could avoid punitive action by the European Union," Conti said at the end of the negotiations. I am always ambitious when I negotiate. "
Conte, Salfini and the other key member of the government, Deputy Prime Minister and leader of the five-star movement, Luigi de Mayo, are expected to meet in Rome to discuss budget plans.
"We made it clear that I was not at war with Italy," Juncker said Sunday. "I love Italy".
For its part, Conté is committed to continue to "revolutionize" Italy. The Italian Prime Minister, a law professor in Florence with no political experience, said he had discussed the budget on the sidelines of the meeting with leaders including Angela Merkel and Emmanuel Macaron. .
"The climate is favorable and mutual trust," Conte told reporters after the EU summit on Sunday, stating that he could talk with his populist deputies, Matteo Salveni. anti-immigrant party, and Luigi de Mayo's anti-institutional five-star movement. "We are confident that we can complete the process to the satisfaction of both sides," he said.
When asked if he would consider a 2.4% deficit next year with Salvini and Mayo, he said, "We are still discussing reforms and what is needed to keep the promises we have made. "
Under pressure from Salvini and Mayo, skeptics over the euro, Conte, upon arriving at the BRICEST summit, held an important dossier presented by Leonker at a dinner held on Saturday evening entitled "A new path to a better future … the new strategy of economic and social growth of Italy"
"That's what we talked about," he said. "We have explained how we will revolutionize the country within five months and we will continue to do so."
His office said the report details previous reforms and those that will be implemented in the coming weeks, focusing on an investment promotion plan.
After breaking the Italian side, the European Stoxx 600 index rose 1.1% yesterday, the main stock market index of the euro area grew by 1.3% and the Italian index of 3%.
The index of the Italian banking sector jumped 53%, which is probably the strongest daily performance since June. UniCredit and Intesa San Paolo dominated the Italian gains and were the main winners in Europe, with respective gains of 4.7 and 4.3%. Obi Banka, BPM, BEP Bank and MediPenka grew between 3.7 and 4.1%.
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