Advertisement

Eurozone delivers warning to Italy on EU budget rules

AFP
AFP - [email protected]
Eurozone delivers warning to Italy on EU budget rules
French Finance Minister Bruno Le Maire (left) talks with Italian Minister of Economy and Finance Giovanni Tria in a meeting at the EU headquarters October 1, 2018. Photo: John Thys/AFP

Eurozone finance ministers firmly warned Italy on Monday to abide by EU rules on public spending, just days after Rome announced a big spending boost in defiance of Brussels.

Advertisement

But, meeting in Luxembourg, the ministers also vowed not to rush to judgement on the economic plans laid out by Italy's populist government, which have already spooked markets and put the country's already fragile economy under pressure.

"I just want to make very clear that there are rules and the rules are the same for every state because our futures are linked," French Finance Minister Bruno Le Maire told reporters ahead of the regular monthly talks with his eurozone counterparts.

However, "rushing is not the best advice," he said, adding that ministers must move ahead "step by step" before coming down on Italy too strongly.

The fragile state of Italy's economy has reawakened memories of the debt crisis amid dangers that Italy could face punitive measures by its EU partners if it insisted on breaking bloc rules on running excessive deficits and high debt.

"Italy is on everybody's mind," said Mario Centeno, head of the Eurogroup and Portuguese finance minister.

"I know that we all have questions about it and that we are expecting answers."

READ MORE: 

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also