Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Italian deficit improving despite slowdown, Conte tells EU in letter

Published 06/20/2019, 05:11 AM
Updated 06/20/2019, 05:11 AM
© Reuters. FILE PHOTO: Italy's Prime Minister Giuseppe Conte awaits to welcome participants as they arrive to attend the first day of the international conference on Libya in Palermo

ROME (Reuters) - Italy's state accounts are improving despite the slowing economy and do not warrant EU sanctions, Prime Minister Giuseppe Conte has written in a letter to EU leaders as he seeks to head off disciplinary action.

The European Union Commission has threatened to impose disciplinary procedures on Italy over the management of its huge public debt, and is urging Rome to adopt new measures to improve its public finances this year and next.

Looking to avoid such a move, Conte wrote to all his EU counterparts late on Wednesday, pledging to abide by EU fiscal rules and making clear his government wanted to avoid a head-on confrontation with Brussels.

"We do not intend to ask for exceptions or concessions with respect to the regulations," said the letter which was posted on the government website on Thursday.

The prime minister wrote that the 2019 budget deficit, currently forecast to come in at 2.4% of output, would be "significantly better" than predicted.

He also said the structural deficit, which excludes one-off revenues and expenditures, would fall by 0.2 percentage points next year.

EU Commission concerns have focused on Italy's debt, which has risen steadily from a pre-financial crisis low of 104% of domestic output in 2007 to now stand at 132%.

It has also flagged the structural deficit, saying that while it should have decreased by 0.6 percentage points this year under EU fiscal rules, it is instead projected to worsen by 0.2 percentage points.

Conte said Commission threats to launch disciplinary proceedings were incomprehensible given recent government commitments, adding that its interpretation of EU rules was penalising Italian efforts to boost economic growth.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Italy, in the interest of its citizens and other European citizens, will adopt a careful and consistent budgetary policy," said Conte, who is due to meet his EU partners later on Thursday at the start of a two-day summit in Brussels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.