Italy expects EU to reject budget on Tuesday – report

Italy to respond to EU letter Monday

Italy is fully expecting the EU to reject its 2019 budget on Tuesday. In an unprecedented (but expected) step, they will ask them to amend and resubmit the budget because the budget deficit of 2.8% of GDP violates EU fiscal rules.

Italy is expected on Monday to submit a response to an EU letter asking for more details and expressing “serious concerns.”

Ultimately, the EU is left without much recourse. It would be extremely popular if they try to fine Italy or withdraw services.

Separately, Moody’s downgraded Italy on Friday to one level above junk but the outlook was moved to stable, which is going to be seen as good news by the market. S&P is set to render its verdict this Friday.


Articles You May Like

USD/JPY finds support near 107.00 mark, recovers early lost ground to multi-month lows
US Treasury Secretary Mnuchin says members of Congress in agreement to raise debt ceiling
Gold Price Weekly Outlook: Gold Rips to 5-Year Highs- Buyers Beware
Nikkei 225 closes lower by 0.72% at 20,972.71
AUD/USD consolidates near 0.6875 ahead of the key day

Leave a Reply

Your email address will not be published. Required fields are marked *