The proposed changes to the parameters for the Italian state budget will result in economic slowdown and public debt increase, European Parliament President Antonio Tajani warned on Friday.
MOSCOW (Pakistan Point News / Sputnik - 28th September, 2018) The proposed changes to the parameters for the Italian state budget will result in economic slowdown and public debt increase, European Parliament President Antonio Tajani warned on Friday.
Earlier in the week, the Italian government agreed on the budget parameters, deciding to elaborate the document with a deficit of 2.4 percent of the country's GDP. The draft budget also provides for the increase of the minimum level of pensions, introduction of benefits for the unemployed and poor. The proposed changes are expected to cost about 33.5 billion Euros ($38.8 billion), with 27.2 billion euros accounting for the budget's deficit share.
"This new budget is targeted against the people. It is depleting [Italy's] north without aiding [the country's] south, it is slowing down the growth and increasing the debt, while at the same time raises the cost of credits and loans for households and enterprises. It makes us less independent and more reliable on markets. This is how common sense is being eliminated rather than poverty," Tajani wrote on his Twitter.
The changes to the budget parameters proposed by the Italian government have faced harsh criticism by Brussels, with EU officials warning that the draft Italian budget contradicted the EU key rules on debt reduction.
Pierre Moscovici, the EU commissioner for economic and financial affairs, taxation and customs, in particular, stated that Brussels was not interested in a conflict with the Italian authorities, stressing that the EU officials just wanted Rome to respect the EU rules on debt reduction.
Moscovici recalled that the Italian draft budget would be submitted to the European Commission for consideration on October 15. Under the EU regulations, following examination, the European Commission can either approve the budget, recommend amending it or simply reject the document, which has never been done before.
"We are not interested in a crisis between the commission and Italy, with Italy being an important country for the Eurozone. But we are neither interested in Italy's violating rules and [ignoring commitment to] reduce state debt, which remains 'explosive' ... Today this budget looks like going beyond the key rules that we have," Moscovici said as quoted by France's BFMTV broadcaster.
He, at the same time, stressed that he was not configured to the imposition of sanctions against Italy, even though they were provided for by the bloc's agreements and possible.
Italy ranks second after Greece in the European Union in terms of public debt, with its debt amounting to 131.8 percent of the country's GDP.
