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On Wednesday, the European Commission took the first step towards disciplining Italy because of its expansionary budget for 2019, after Rome refused to amend it, raising an issue in a conflict that alarmed the entire euro area and could eventually lead to fines. Afterwards, Paolo Savona, Minister for European Affairs, insisted: "We can not go on like this, it does not make any sense, the budget is not good anymore: it needs to be rewritten." Mr Savona, who was speaking at the launch of a book titled "Globalization, asymmetry of governance", written by his friend Giancarlo Elia Valori, said that the European Union was struggling with a "severe internal turbulence ".
He also told the newspaper Corriere della Sera that the government figures increasingly felt that "we will not hang out long".
At a budget meeting yesterday, the European Commission said the Italian draft budget increased the structural deficit for 2019, which excludes exceptional items and business cycle fluctuations, from 1% of gross domestic product to to reduce it by 0.6% as required by EU legislation. .
Italy also does not want to reduce its huge debt in a "particularly serious case of non-compliance" with the rules, said the European Commission, thus justifying the launch of an excessive deficit procedure.
Italy's debt, at 131% of GDP, is proportionally the second highest in the euro area after that of Greece. According to EU rules, it is expected to fall annually to 60%, but the Commission has indicated that it would be stable for the next two years.
Vice-President Valdis Dombrovskis said: "The opening of an excessive deficit procedure based on debt is therefore justified.
"In a very high debt situation, Italy is essentially providing for significant additional borrowing, instead of the necessary fiscal prudence.
"The impact of this budget on growth will probably be negative for us.
"It does not contain meaningful measures to boost potential growth, perhaps even the opposite."
Dombrovskis said: "With what the Italian government has put on the table, we see a risk of instability for the country."
Speaking in Rome, Mr. Salvini, leader of the right-wing Lega party, remained provocative, insisting: "We are convinced of the figures in our budget.
Mr Salvini, who had previously stated that "not a single comma" of the budget would be changed, said that a fine against Italy would be "disrespectful".
Italian Prime Minister Giuseppe Conte, who is due to meet on Saturday with Commission President Jean-Claude Juncker, said yesterday that the government was convinced that the budget was excellent and in the interest of Italy and Europe. l & # 39; Europe.
Economy Minister Giovanni Tria and Deputy Prime Minister Luigi Di Maio also made conciliatory remarks that Rome and the EU were pursuing the same goals and seeking a common solution.
In writing on Facebook, Mr. Di Maio said, "We want the same thing: reduce debt."
Mr Tria said that Italy believed that the "moderately expansionary" budget was necessary to counter the slowing economy and that it would "continue the dialogue with the Commission in order to seek a common solution in our mutual interest ".
Speaking also to the Courrier della Sera after the meeting yesterday, the Commissioner for Economic Affairs of the European Union, Pierre Moscovici, said that discussions on budget dialogue were ongoing.
"non-optional requirement".
"Mutual respect was necessary", while the irony was "out of place", he added, in remarks probably aimed at Mr. Salvini's combative position.
(Additional report by Maria Ortega)
