Eu commission warns of new budget problems in italy

Italy has taken "a series of measures to reduce the budget deficit in 2019". In fact, a large part of these measures merely postpones the date on which the expansionary fiscal measures will come into force," dombrovskis told journalists on the sidelines of a conference in riga.

The EU commissioner from latvia, who is responsible for the euro, cited the planned burial income and a reduction in the retirement age as examples. As a result, in 2020 could result in a "negative fiscal effect" and a "major problem with the budget", said dombrovskis.

The EU commission and rome had agreed on a compromise for the 2019 italian budget only shortly before christmas after months of wrangling. In an unprecedented move, the brussels authorities had initially rejected the original italian budget plans with a high new debt target. In order to avert criminal proceedings against italy by the EU commission, rome made significant changes to its budget at the last minute.