12.11.2018 | Rome dismisses Brussels ultimatum and warns EU 'expect same plans'
Source - The Daily Express
European Union bosses have threatened to sanction the Mediterranean country unless it falls into line and follows the bloc’s fiscal rules in an unprecedented move which could see Rome slapped with a fine of £3billon (?3.4billion). But Italy’s populist government remains defiant and has rejected demands to submit a revised budget by Tuesday. Guglielmo Picchi, a politician in the right-wing League party, told the Sunday Times: “On Tuesday they will expect a letter from us - the letter from us will say it’s still the same budget.”
And the ruling coalition says it will consider revising its financial plans - but only after Italy has been given the chance to make its proposals work.
Mr Picchi said the government expects “the first positive effect” of its spending plan to filter through the economy and begin producing results by September 2019.
He said Rome is “ready to change policy” if the predicted benefits do not materialise.
He added: “We are ready to adjust the budget next year if our decisions taken this year don’t produce the expected growth.”
Mr Picchi said Italy planned to adopt “exactly the same approach” to talks with Brussels as the UK has during the Brexit negotiations.
He said the European Commission had tried to “threaten” Italy into backing down over its budget by releasing gloomy economic predicts which show the Italian economy growing at a slower rate than expected.
He added: “They’re trying to threaten is that Italy is going to collapse, to leave Europe, bankruptcy, that the banks are going belly up, the people will not be able to protect their savings and all this stuff that is very close to Project Fear.”
But Italy’s economy minister has warned giving in to Brussels’ demands and slashing borrowing would be “economic suicide” for the Mediterranean nation.
Speaking on Friday, Giovanni Tria said there would be no budget revision, adding the target set by the bloc would be “economic suicide and I don't believe the EU expects this”.
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