Displaying items by tag: eurozone

Italy has refused to back down over its expansionary 2019 budget, which EU chiefs claim breaches previous spending agreements. The indebted nation at first unveiled plans for a deficit budget of 2.4% of GDP, three times the previous administration's target. The European Commission rejected the draft and demanded it be revised to a more realistic level. But the Italian government has so far refused to budge, saying the spending plans are in the best interest of the Italian people. Prime minister Salvini has even threatened to veto the next proposed eurozone budget, in retaliation. However, that budget will be available only to those countries which abide by EU rules about budget deficits and debt; so Italy could be left out in the cold if the dispute is not resolved.