Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Italy Flouts Rules and Sets Itself on EU Collision Course

Published 10/08/2018, 06:28 AM
Updated 10/08/2018, 06:50 AM
© Reuters.  Italy Flouts Rules and Sets Itself on EU Collision Course

(Bloomberg) -- One of the main principles of the European Union’s fiscal rules is that the structural budget deficit may not surpass a medium-term objective of 0.5 percent of GDP if the debt-to-GDP ratio is above 60 percent or 1 percent if that ratio is below 60 percent. Old forecasts had Italy adhering to that commitment by next year, but the new government is openly flouting the rules and setting itself on a collision course with the EU. While Bloomberg Economics believes that a compromise will probably be found, the disagreement marginally increases the probability of the populist government leading the country out of the euro area.

To contact the staff on this story: David Powell (Economist) in London at dpowell24@bloomberg.net;Dan Hanson (Economist) in London at dhanson41@bloomberg.net

To contact the editor responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net

©2018 Bloomberg L.P.

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.