Germany optimistic about budget compromise with Italy

(L-R) Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, Taxation and Customs, and German Minister of Finance Olaf Scholz chat prior to the start of an Eurogroup Finance Ministers' meeting at the European Council in Brussels, Belgium, 24 May 2018. EPA-EFE/STEPHANIE LECOCQ

Germany optimistic about budget compromise with Italy


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German Finance Minister Olaf Scholz publicly stated that Chancellor Angela Merkel’s government is optimistic that Italy will compromise when it comes to details of a newly revised budget for the coming year.

Scholz said Italy is being forced to adhere to strict austerity-style politics, in the same vein as Greece, but added, “whoever has 130% of their GDP in debt must act more cautiously,”

The European Commission rejected Italy’s fiscal plan for 2019 on October 16 and threatened to impose stiff penalties on the Eurosceptic government if it failed to revise its budget plans of the budget. The Italian government, however, has thus far refused to alter their budget plans and bring it in line with the EU’s target of 2.4%.

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