• Facebook
  • LinkedIn
  • Twitter

maltawinds.comLogo

The Economy's Voice

Menu

Skip to content
  • Home
  • About
  • Local News
  • International News
  • Opinion
  • Demia on Sundays
  • Demeter
  • Business
  • Satire on Sunday
  • Queen Elizabeth and the royal family pay their respects as Prince Philip is laid to rest
  • Lower energy bills for families: New solar water heaters and heat pumps schemes launched

EU says Italy’s slower growth might trigger spending freeze

Posted by Vento on 8th April 2019 in International News

BUCHAREST (Reuters) – Italy may be forced to freeze some of its planned public expenditures this year as the country’s growth is slower than forecast, European Commission Vice President Valdis Dombrovskis said on Saturday.

Brussels had predicted in February a meagre 0.2 percent expansion in Italy this year, but Dombrovskis said that growth could turn out to be “even slower” as global and domestic factors had dampened the outlook.

A possible downward revision would further widen the gap with growth estimates made by Italy’s eurosceptic government, which based its free-spending 2019 budget on the assumption of a 1 percent expansion.

The European Commission will publish its new economic forecasts on May 7.

“There are concerns as the economy has slowed down,” Dombrovskis told a news conference in Bucharest. “We need to see what implications it has for the budget.”

Speaking the day after a meeting with Italian Finance Minister Giovanni Tria on the budget, Dombrovskis said in these circumstances Italy would probably be required to freeze 2 billion euros ($2.2 billion) of spending this year in order to respect EU fiscal rules.

Rome had agreed with Brussels that those 2 billion euros would be spent only if economic conditions did not deteriorate. Now this safeguard clause “should normally be activated,” said Dombrovskis, who is the commissioner in charge of the euro.

The clause was negotiated to make sure Rome remained broadly compliant with EU rules that require countries with large public debts to gradually reduce them. Italy’s debt stands above 130 percent of output, the second highest ratio in the EU after Greece, which went through three bailouts in recent years.

Dombrovskis added that Tria had assured him Italy would respect EU fiscal rules in its budgetary plans for the coming years that will be submitted to Brussels at the end of April.

Earlier this week the Organisation for Economic Cooperation and Development, a club of mostly rich nations, forecast a 0.2 percent output fall in Italy in 2019.

Source: uk.reuters.com

Posted in International News | Tagged economy, EU, European Commission, Italy, Valdis Dombrovskis

About the Author

Avatar

Vento

Related Posts

The restructuring of the aviation sector is resulting in more efficiency and coordination between all stakeholders, both public and private→

English shops and pub gardens reopen in ‘major step’ to freedom→

Greenpeace deems EU funding of meat and dairy promotions as ‘irresponsible’→

Italy, Britain suggest age limits for AstraZeneca vaccine but still recommend it→

advertisement
  • Posts
  • Comments
  • Tag Cloud
  • Queen Elizabeth and the royal family pay their respects as Prince Philip is laid to rest

    17th April 2021 / Vento
  • Lower energy bills for families: New solar water heaters and heat pumps schemes launched

    17th April 2021 / Vento
  • Research funding drives forward the development of a new product in the construction sector

    17th April 2021 / Vento
  • Brazil asks women to delay pregnancy over new coronavirus variant fears

    17th April 2021 / Vento
  • Turkey bans crypto payments for goods and services

    17th April 2021 / Vento
  • Avatar
    Joseph Tabone on In his final days as POTUS, Trump…Trump will be voted out…
  • Avatar
    Joseph Tabone on Moviment Graffitti in strong opposition to outrageous…Why the objections? If the…
  • Avatar
    Joseph Gatt on The government is committed to supporting Malta’s…Both the Business Start (B…
  • Avatar
    Hindi Lyrics on Nurse death toll from COVID-19 hits the…I have been looking for…
  • Avatar
    Mehfooz Roy on US Presidential Elections: Biden leads polls in…You really think sleepy Joe…
aviation banking Bitcoin blockchain Boris Johnson BOV brexit business China COVID-19 cryptocurrency Donald Trump ECB economy Education environment EU euro area Europe European Commission European Parliament European Union Eurostat eurozone France Germany Government Infrastructure Malta investment Italy lockdown Malta maritime pandemic politics recovery restrictions Russia technology travel UK United States US vaccine WHO

News Calendar

April 2019
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Mar   May »
Footer logo
  • Facebook
  • LinkedIn
  • Twitter
 




 
 
 

Copyright © 2016 MaltaWinds.com

Menu

  • About
  • Home