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Italy: Rome and Brussels Gear Up for Another Deficit Fight

May 28, 2019 | 15:13 GMT

(Stratfor)

Italy is rolling up its sleeves for another showdown with the European Commission. On May 27, Italian Deputy Prime Minister Matteo Salvini said he planned to proceed with his economic program, which includes lowering taxes and increasing expenditures for big infrastructure projects -- regardless of whether the European Commission likes it or not. On June 5, meanwhile, the commission is expected to issue an assessment of the Italian economy that will likely include calls to lower the country's deficit. Faced with pressure at home and abroad, the partners in Italy's government are ultimately likely to stick together and try to find internal compromises on policy, at least for a few more months. Domestic disputes and external pressure, however, are only set to increase, meaning Italy is set for an uncertain political and fiscal future....

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