SHARE
COPY LINK

POLITICS

Budget: Brussels demands ‘clarification’ from Italy over spending plan

The European Commission demanded urgent clarifications from Italy over its budget plans for next year, worried it will veer from spending cut commitments made to Brussels.

Budget: Brussels demands 'clarification' from Italy over spending plan
Valdis Dombrovskis, EU commission vice president. Photo: AFP

A letter from the EU's executive arm  on Tuesday could be the first step before the commission rejects a budget outright and demands a new draft.

READ ALSO: What Italy's new budget proposals mean for foreign residents

France, Spain, Belgium and Finland were also contacted over budget concerns.

“Italy's plan does not comply with the debt reduction benchmark in 2020,” said a letter signed by EU economics affairs commissioner Pierre Moscovici and commission vice president Valdis Dombrovskis.

Rome sent its budget on Wednesday hoping to get Brussels to agree to a deficit of 2.2 percent of GDP, which the EU said risked delaying the reduction of Rome's massive debt mountain.

The spending plans were the product of fraught negotiations between the new coalition in Italy, an unlikely partnership between the anti-establishment Five Star Movement and the centre-left Democratic Party.

Italian Prime Minister Giuseppe Conte. Photo: Andreas Solaro/AFP

“We will provide all clarifications to the EU, we are not concerned,” said Italian Prime Minister Giuseppe Conte.

“It is a necessary dialogue with Brussels from which we will not escape”.

A year ago, the The European Commission for the first time ever rejected a national budget when it turned down Italy's controversial 2019 spending plans, submitted by the previous government, a populist far-right coalition.

After months of loudly refusing to make changes, Italy later accepted the tighter spending and debt reduction demanded by Brussels and revised its spending plan.

READ ALSO: 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

POLITICS

Italy to resume funding for UN agency for Palestinian refugees

Italian Foreign Minister Antonio Tajani on Saturday announced Rome would restore funding for the UN agency for Palestinian refugees as he met with Palestinian Prime Minister Mohammed Mustafa.

Italy to resume funding for UN agency for Palestinian refugees

“Italy has decided to resume financing specific projects intended for assistance to Palestinian refugees, but only after rigorous controls that guarantee that not even a penny risks ending up supporting terrorism,” he said.

Tajani said he had informed the visiting premier “that the government has arranged new funding for the Palestinian population, for a total of 35 million euros”.

“Of this, five million will be allocated to UNRWA,” he said in a statement, with the remaining 30 million euros allocated to Italy’s “Food for Gaza” initiative in coordination with UN aid agencies.

UNRWA, which coordinates nearly all aid to Gaza, has been in crisis since January, when Israel accused about a dozen of its 13,000 Gaza employees of being involved in the October attack on Israel by Hamas.

That led many nations, including top donor the United States, to abruptly suspend funding to the agency, threatening its efforts to deliver aid in Gaza, although several have since resumed payments.

An independent review of UNRWA, led by French former foreign minister Catherine Colonna, found some “neutrality-related issues” but said Israel had yet to provide evidence for its leading allegations.

Created in 1949, the agency employs around 30,000 people in the Palestinian territories, Jordan, Lebanon and Syria.

Mustafa was later due to meet with Italian Prime Minister Giorgia Meloni.

SHOW COMMENTS