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By COLLEEN BARRY, AP Business Writer
MILAN (AP) – Italy's head of state said on Thursday that the government would accelerate investment for economic growth, but the main points of its budget plan for significant spending would not be changed despite the warning the EU against non-compliance.
Giuseppe Conte told lawmakers that if eurozone countries impose sanctions on Italy's budget, as recommended by the EU Executive Commission, he would ask that they be extended " to allow the economic maneuver to produce its effects on growth, and consequently reduce the public debt. "
Mr Conte and his key ministers remain determined to try to convince the European partners of the need to significantly increase their spending, despite repeated warnings that the plan would hurt the economy by making it more indebted. This month, the European Commission has raised the stakes, urging the other Italian countries in the euro to consider sanctions against the country for having so blatantly violated the budgetary rules of the country. ;Union.
The new Italian populist government has said spending plans are needed to spur growth after years of austerity measures. They are also delivering election promises to end an unpopular pension reform that could result in thousands of retirements in the coming months and introduce a base salary for jobseekers.
But the stalemate with Europe has an impact on Italian finances. Investors are mocking the Italian government's obligations in the face of concerns over the budget dispute.
Italian four-year bond orders only reach 2.16 billion euros (2.47 billion dollars), which is significantly lower than the expected 8 billion euros and at the second worst result ever recorded. The record reached 22.2 billion euros in November 2013 and the lowest level was 1.73 billion euros in June 2012.
Italian Deputy Prime Minister Luigi Di Maio told reporters that he hoped Italy could convince the EU of the need to increase spending by his government.
Referring to Italy's numerous budget cuts since the financial crisis, Di Maio said: "They can not treat Italy in the same way after years of massacres".
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