The Italian government has defied the European Commission by sticking to its big-spending budget plan. Deputy Prime Minister Matteo Salvini said a deficit target of 2.4% and a growth forecast of 1.5% were unchanged.1 comment
Italy's government on Tuesday pushed the country closer to a showdown with the European Union after submitting its latest budget for review. The budget proposes increases both Italy's overall government debt and its deficit in the short run pushing the deficit as high as 2.4% of GDP over the coming years. This means Italy will fall foul of a previously mandated maximum deficit level of 0.8% of GDP.
A coalition government has been agreed in Italy, ending months of uncertainty in the EU's fourth-biggest economy. Prime Minister-designate Giuseppe Conte presented his list of ministers to President Sergio Mattarella for the second time in a week and the new government will be sworn in this Friday, June first.
Senior Italian politicians on Tuesday called for EU budget commissioner Gunther Oettinger to resign over an absurd comment in which he voiced the hope that the country's poor economic situation will keep populist parties out of government.
The leader of Italy's biggest political party has called for the president to be impeached after he vetoed a choice for finance minister. Luigi Di Maio of the populist Five Star Party said President Sergio Mattarella had caused an institutional crisis.
Law professor Giuseppe Conte has been named as the choice of the Five Star Movement and League to lead the Italian coalition government. The leaders of the two parties have been holding talks with President Sergio Mattarella over the approval of their coalition government.
Italy’s two anti-establishment parties promised on Friday to ramp up spending in a program for a new coalition government, putting them on a collision course with the European Union despite having dropped some of their most radical proposals.
Italian anti-establishment and far-right leaders met on Friday to hash out a deal over a joint government that could be announced as soon as Sunday. Matteo Salvini, leader of the nationalist League, told reporters after meeting head of Five Star Movement (M5S) Luigi Di Maio at the lower house Chamber of Deputies that their aim was to reach an agreement as soon as possible.
President Sergio Mattarella on Monday suggested the formation of a 'neutral' government to rule until the end of this year after a third round of consultations failed to produce to way out of Italy's post-election political deadlock.
Italy's general election on Sunday has so far resulted in a hung parliament, with the country's Euro skeptic Five Star Movement emerging as the single party with the most votes. The centre-right coalition headed by former Prime Minister Silvio Berlusconi is expected to gain between 248 and 268 seats and a 37% vote share, which is still short of a majority. Some 316 seats are needed to form a government.