Conflict over Italy’s 2019 Budget: Implications for European Policy
Conflict over Italy’s 2019 Budget: Implications for European Policy

Author(s): Marta Makowska
Subject(s): National Economy, Governance, Economic policy, International relations/trade, Fiscal Politics / Budgeting, Peace and Conflict Studies
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: Italy; European policy; Italy’s 2019 budget; political conflicts; financial sanctions; eurozone;
Summary/Abstract: Italy submitted a draft budget for 2019 to the European Commission (EC), which is, however, not in line with the Stability and Growth Pact. The Commission can launch the excessive deficit procedure (EDP) and impose financial sanctions but that remedy is unlikely because the Commission would rather adopt a conciliatory stance to avoid the growth of anti-European sentiment in Italy. Given this ongoing conflict, adoption of a reform package for the eurozone will be delayed.

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