Juncker warns Italy about his budget trajectory

BRUSSELS, October 1 (Reuters) – The president of the
European Commission warned Jean-Claude Juncker
Italy, on Monday, against its draft budget for 2019 that it
The Brussels authorities consider it incompatible with the objectives of the
reduction of government debt.

Italian Treasury Minister Giovanni Tria has promised
Monday to reassure its counterparts in the eurozone about the project,
defended by the Eurosceptics of the 5 star movement and the
League, which predicts a deficit of 2.4% of the gross domestic product
(GDP) for the next three years.

"Italy differs from the budgetary targets we have
jointly approved by the EU ", said Jean-Claude
Juncker during a statement in Germany.

"I do not wish that after the Greek crisis to have overcome
we fell back into the same crisis in Italy. A crisis of this
kind is enough, "he said.

"If Italy wants extra special treatment,
it would mean the end of the euro. It must be very strict,
he added.

The European Commissioner for Economic Affairs and
Pierre Moscovici, said the European executive power
would try to convince the Italian government to revise
its budgetary targets.

"We will try to convince the Italian authorities
to return a target in the medium term that is the tax rule
from the EU, "Moscovici said.

At this stage, he explained, it is not possible to
to determine whether the Italian draft budget for 2019 will succeed
a reduction in public debt accounting for 133% of GDP.

(Gabriela Baczybska with Francesco Guarascio Luxembourg;
Pierre Srisier for the French service)

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