Italy PM Conte meeting with Juncker uncertain as government resists changes to deficit: report

ROME (Reuters) – Italian Prime Minister Giuseppe Conte could call off a meeting with European Commission President Jean-Claude Juncker scheduled for Wednesday as the ruling coalition parties are resisting any major reduction to next year’s deficit target, Italian newspaper La Repubblica reported.

The European Commission has rejected Rome’s budget, which predicts the deficit will rise to 2.4 percent of gross domestic product in 2019 from 1.8 percent this year, saying it will not cut Italy’s large public debt as the rules require.

The two coalition partners, the right-wing League and the anti-establishment 5-Star Movement, are not willing to reduce the 2019 deficit/GDP target to below 2.1 percent, La Repubblica said, complicating efforts to avoid EU disciplinary action.

The League is tempted to go to early elections in March if the EU decides to discipline Italy and is planning to use the clash with Brussels in its election campaign, the paper added, citing rumors.

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