The International monetary Fund (IMF) has warned of the impact of the financial problems of Italy to other European countries. The uncertainty over Italy’s finances was significant, said the IMF in its autumn forecast for Europe. Italy’s public finances could come under pressure and, therefore, other States infected, their economy is weaker, and the budgetary freedom of action was limited.
The European Commission had previously warned that the sovereign debt of Italy could rise sharply, should hold the government in Rome to your budget plans. In this case, the borrowing will increase in 2019 to 2.9 percent and in 2020 by 3.1 percent of gross domestic product (GDP), predicted by the IMF. And above the deficit limit of three percent, which is one of the Maastricht criteria, a country has to fulfil to become a member.
since June, President of the coalition of the populist Five-star movement and the xenophobic Northern League is of a much lower increase. Italy’s economy Minister Giovanni Tria accused the EU Commission of “technical failure”. In spite of the additional information and clarifications from Rome and your analysis of the Italian budget was “inadequate and one-sided”.
The EU Commission had rejected in October in the case of Italy, for the first time ever, the draft budget of a member state. She criticized that the value is for 2019, three times as high as that of the previous government, with Brussels agreed.
Italy still has to 13. November time, a corrected budget. Otherwise, the opening of an excessive deficit procedure, the fines can draw in the billions to threaten the government.