Skiurlaub- günstig mit FeWo-direkt
Espresso der Extra-Klasse


Bundesliga-Tickets mit Garantie!


Hotelsuche in 
 

1ST LEAD Italy defends 37-billion-euro budget, despite expert criticism By Alvise Armellini, dpa

Europe
10.10.2018
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Rome (dpa) - Italy‘s populist government does not intend to change its controversial budget plans, even after coming under fire from financial markets, the European Union and independent observers.

Economy Minister Giovanni Tria conveyed the message on Wednesday after the Parliamentary Budget Office (UPB), an independent watchdog, dismissed government economic forecasts as overly optimistic.

The UPB remarks, expressed on Tuesday, "are an incitement to act, rather than to lower our forecasts, or, even more importantly, lower our ambitions," Tria said in a parliamentary hearing.

The 2019 budget foresees 36.7 billion euro (42.2 billion dollars) of extra spending, with 22 billion euros covered by a higher deficit, the minister said.

A further 6.9 billion euros should come from cuts in government spending and 8.1 billion euros for higher tax revenues, Tria told lawmakers.

By running a higher deficit, the government expects to create a major stimulus for the economy, generating extra wealth that would allow Italy to repay its high public debt.

The UPB, and many other expert institutions, consider this a high-risk strategy which could leave Italy with lower-than-expected growth and higher-than-expected debts.

"It is a mistake. It is like gambling on the long-term economic and fiscal health of Italy," Mark Zandi, chief economist of Moody‘s credit ratings agency, told La Stampa newspaper.

Italy‘s ruling parties, the far-right League and the anti-establishment Five Star Movement (M5S), want the extra deficit to fund pledges they made on tax, pensions and welfare giveaways.

Budget plans are an "act of courage which Italy had been waiting for for years," Luigi Di Maio, M5S leader, deputy premier and industry minister, told RAI state radio.

He blamed market jitters, and a sell-off in Italian government bonds that has fuelled fears of a possible financial crisis, on "a great prejudice against this government."

On Wednesday, Italy sold 6 billion euros of one-year government bonds, but at a yield of 0.95 per cent, more than twice the rate achieved at a previous auction in September.

If a country has to offer higher yields on sovereign bonds, it is a sign of declining market confidence, and it makes it more expensive to service the public debt.

So far, Italy has only announced headline targets for debt, deficit and economic growth, and has yet to release full budget plans. They are due to be sent to the European Commission by October 15.

The EU executive, which oversees budget discipline rules, can reject the plans or demand changes. On Friday, it warned that Italy was heading for a "significant deviation" from agreed fiscal targets.

 

Kommentare zu diesem Artikel
 
Neuer Kommentar
Name *
Email * (wird nicht öffentlich angezeigt)
Kommentar
* Pflichtangaben
 
Diesen Artikel empfehlen

Absender Empfänger Nachricht (optional)
Name
E-Mail

Name
E-Mail
   
 
 
Tipps der Redaktion aus dem Nachrichtenportal
 
NACHRICHTEN
Berlin (dpa) - German Chancellor Angela Merkel‘s contingency plan for a no-deal Brexit is inadequate, a leader of Germany‘s pro-business FDP opposition party told dpa on Wednesday, just hours before she was set to address parliament on
Dusseldorf, Germany (dpa) - The prosecutor‘s office that handles terrorism cases in Germany confirmed on Wednesday that it is investigating an arson attack and hostage-taking by a suspected Islamist in the western city of Cologne.Investigators
Istanbul (dpa) - The United States‘ top diplomat arrived in Ankara on Wednesday to discuss the case of missing Saudi dissident journalist Jamal Khashoggi, according to state news agency Anadolu.Secretary of State Mike Pompeo was met by
Kabul (dpa) - A number of German military transport helicopters were shot at though no injuries were reported during a flight in Afghanistan‘s northern Kunduz province, the military said late Tuesday. The helicopters were fired upon while
Brussels (dpa) - If Britain were to hold another referendum today on the country‘s membership in the European Union, the eurosceptics might not repeat their success, according to a study released on Wednesday.Around every second person in
Munich (dpa) - Thousands of investors in insolvent shipping container management firm P&R gathered in Munich on Wednesday to discuss their claims in one of the biggest German investment scandals in recent history.Some 54,000 investors - most of them
 
Tipps der Redaktion aus dem Reiseportal
 
REISEPORTAL
Pyeongchang, South Korea (dpa) - Norway‘s Marit Bjoergen wins the 30-kilometres cross country ski race to become the best decorated Winter Olympian of a all time with eight gold, four silver and three bronze.
Pyeongchang, South Korea (dpa) - China highlighted that construction for the Beijing 2022 Winter Olympics is in full swing while trying to defuse questions on the sensitive issue of artificial snow-making at the ski venues.Organizing committee BOCOG
Berlin (dpa) - Figure skating events at the Pyeongchang Olympics, with day and time (in GMT), 2014 champions and athletes to watch.Monday, February 12, 0100: team event (Russia) Thursday, February 15, 0130: pairs (Tatiana Volosozhar/Maxim Trankov,
Seoul (dpa) - An overview of venues to be used to the Pyeongchang Winter Olympic Games in 2018.Pyeongchang Mountain ClusterLocated around 180 kilometres east of Seoul in the Gangwon province. Here there is the 35,000-capacity Olympic stadium for the
Frankfurt (dpa) - Germany will be unable to host an Olympic Games inside the next decade but the subject will not remain closed, a leading official has said."The overall topic of a potential bid has rather a mid- or long-term character," German
Pyeongchang, South Korea (dpa) - The International Olympic Committee advanced plans on Thursday to set up an independent anti-doping testing system following the drugs scandal in Russian sports.The World Anti-Doping Agency (WADA) is also set to
Wetter

Luxemburg


(23.10.2018 23:16)

2 / 12 °C


24.10.2018
10 / 15 °C
25.10.2018
4 / 14 °C
powered by wetter.com
Stock News

Agenda - The Week Ahea ...
Agenda - The Week Ahea ...

Afghan Farah Governor ...
Ministry Warns Cinema ...

Merkel under pressure ...
1ST LEAD One Palestini ...

URGENT: Norway's Bjoe ...
China highlights Beiji ...

banner

banner

banner

banner

© europe online publishing house GmbH, Weiden, Germany, info@europeonline-magazine.eu | Impressum