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EU reaches agreement with Italy on budget

Source: Xinhua| 2018-12-19 21:38:15|Editor: xuxin
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BRUSSELS, Dec. 19 (Xinhua) -- The European Commission said on Wednesday that it has reached an agreement with the Italian government over the latter's 2019 budget, ending a long-running clash.

The agreement, said Valdis Dombrovskis, the European Commission Vice President, at a press briefing involves Rome setting a budget deficit of 2.04 percent of gross domestic product (GDP), rather than the 2.4 percent that Rome had proposed.

Brussels has taken note in a letter sent to Rome that such a new plan presented by Rome is acceptable, according to a European Commission press release.

The agreement came after a two-month skirmish, in which Rome insisted on more deficit spending to revive its economy and pander to voters.

Brussels, on the other hand, warned that would add to Rome's unsustainably high debt while breaking eurozone rules.

If the Italian parliament approved the government's plan before the end of the year, the European Commission wouldn't push forward a disciplinary action, according to the press release.

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