BREAKING NEWS Baseball legend Hank Aaron passed away at the age of 86 Full Story

European Commission rejects Italian government's spending plans

The European Commission rejected Italy's draft budget Tuesday, the first time the European Union executive h...

Posted: Oct 23, 2018 3:35 PM
Updated: Oct 23, 2018 3:35 PM

The European Commission rejected Italy's draft budget Tuesday, the first time the European Union executive has thrown out a government's spending plans since the single currency was introduced nearly 20 years ago.

"The euro area is built on strong bonds of trust, underpinned by rules that are the same for everybody," commission Vice President for the Euro Valdis Dombrovskis said in a statement. "Italy's debt is among the highest in Europe, and Italian taxpayers spend about the same amount on it as on education. In this spirit, we see no alternative but to request the Italian government to revise its draft budgetary plan for 2019, and we look forward to an open and constructive dialogue in the weeks to come."

Business, economy and trade

Continents and regions

Currencies

Economy and economic indicators

Europe

European Union

Government organizations - Intl

Italy

Money, banknotes and coins

Southern Europe

Government and public administration

Government budgets

Public finance

Economic policy

Eurozone

Monetary unions

Nineteen of the 28 EU member states have signed up to the single currency, meaning the European Commission must vet government budgets.

Italy's populist government wants to increase public spending and smash through spending targets previously agreed on with Brussels, in order to kick-start the economy as well as maintain and increase welfare payments.

Although the Italian proposal is still below the EU's deficit limit of 3% of gross domestic product, the ratio increases significantly from last year's 1.8%.

The European Commission said in a statement the 2019 draft budgetary plan expects the government deficit "to markedly increase to 2.4% of GDP in 2019, three times higher than initially planned."

On Monday Italian Economy Minister Giovanni Tria sent a letter to the commission to say Rome will stick with its budget plans despite criticism.

The Italian government, which includes the anti-EU League party, will have three weeks to respond to Tuesday's decision by the European Commission with revisions of its proposal or ignore the commission's warnings.

If Rome refuses to budge, Brussels' next step would be to open an "excessive deficit procedure" that could end with financial sanctions in 2019.

California Coronavirus Cases

Data is updated nightly.

Cases: 3095814

Reported Deaths: 35549
CountyCasesDeaths
Los Angeles104602114641
San Bernardino2587421561
Riverside2558082739
San Diego2197312222
Orange2178492546
Santa Clara959361158
Kern87240572
Fresno83591968
Sacramento816871128
Alameda69107842
Ventura63413462
San Joaquin58843788
Contra Costa53349460
Stanislaus43392773
Tulare42186515
Monterey36464255
San Mateo33207309
San Francisco29665274
Solano26191108
Santa Barbara25405243
Imperial25380486
Merced24570316
Sonoma24262242
Kings19588148
Placer17584186
San Luis Obispo16056140
Madera13585151
Santa Cruz12461113
Marin11732159
Yolo10852138
Shasta9750123
Butte9582128
El Dorado788649
Sutter782879
Napa773145
Lassen519916
San Benito504246
Yuba499627
Tehama433244
Tuolumne340340
Nevada323874
Mendocino319232
Amador303631
Lake264631
Humboldt245825
Glenn195520
Colusa17969
Calaveras163723
Siskiyou145713
Mono11244
Inyo98329
Del Norte8672
Plumas5895
Modoc3853
Mariposa3464
Trinity3044
Sierra820
Alpine730
Unassigned00
Chico
Cloudy
46° wxIcon
Hi: 50° Lo: 46°
Feels Like: 43°
Oroville
Cloudy
52° wxIcon
Hi: 49° Lo: 44°
Feels Like: 52°
Chico
Cloudy
46° wxIcon
Hi: 43° Lo: 37°
Feels Like: 43°
Red Bluff
Cloudy
51° wxIcon
Hi: 32° Lo: 26°
Feels Like: 51°
Red Bluff
Mostly Cloudy
51° wxIcon
Hi: 51° Lo: 38°
Feels Like: 51°
Chico
Partly Cloudy
46° wxIcon
Hi: 54° Lo: 39°
Feels Like: 43°
Light rain and snow is expected in your Friday forecast. We'll be mostly dry and warmer on Saturday. A more substantial system with lower snow levels is in your forecast for Sunday into early Monday. Long range models are showing very wet weather for the middle of next week.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events