MILAN (Reuters) – Italy needs a big deficit correction for this year and next to avert a European disciplinary procedure over its deteriorating public finances, European Commission Vice President Valdis Dombrovskis told La Repubblica daily on Thursday.
“What is needed is a substantial deficit correction in 2019 and 2020,” Dombrovskis said in an interview published a day after the Commission opened the way to a possible disciplinary procedure that would trigger a clash with Rome’s anti-austerity government.
Dombrovskis also said that a planned tax-cutting reform backed by the right-wing League – which governs in coalition with the anti-establishment 5-Star Movement – could be very expensive and help to further deteriorate Italy’s public finances.
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