As things stand, crafting a fiscally sound 2020 budget will prove challenging in Italy, said Paolo Pizzoli, analyst at ING, while noting that both Salvini and Di Maio have recently re-affirmed their determination to sterilize the budgeted VAT increase.
Key quotes:
“As made clear by Commissioner Moscovici, the EU Commission will monitor the implementation of the measures in the second half of the year and will stand ready to ensure that the 2020 draft budget to be presented this autumn will be compliant with the Stability Pact.”
“As so far the indications of the relevant funding have been vague at best, the risk that the threat of a procedure could be resurrected during the autumn budget season remains high.”
“Furthermore, debt reductions initiatives budgeted for 2019, worth on paper some €18bn (or1% of GDP) have so far failed to materialize.”
Share
