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Tuesday 20th March 2018

EU warns Italy against violating budget rules

Business

7Dnews London - AP

Tue, 02 Oct 2018 21:10 GMT

Eurozone finance ministers have told Italy on Monday they must abide by Union spending rules a few days after Rome announced its biggest spending increase in defiance of Brussels, reports AP.

But the ministers gathered in Luxembourg and also promised not to rush to judge the economic plans put forward by the populist government of Italy, which scared the markets and put pressure on the fragile economy. 

"I just want to make clear that there are rules that apply to every country in the euro zone because our future is linked to each other," French Finance Minister Bruno Lemerre told reporters ahead of regular monthly talks with his counterparts in the euro zone. 

The fragile state of the Italian economy is reminiscent of the debt crisis, amid concerns that Italy will face punitive measures from its EU partners if it insists on violating EU laws, bypassing the specific trade deficit and raising its debt. 

"Italy is in everyone's minds, and I know we will all have questions for them and we expect answers," said Eurogroup president Mário Centeno.


Europe