Italy faces crucial time on budget

ROME – Italy’s finance minister Giovanni Tria is facing pressure from members of his own cabinet over expensive election promises in light of Italy’s fragile financial situation, official sources said on Friday.

 Italy’s economic growth and deficit indicators were revised up, giving Tria more space for manoeuvre. Italy’s deputy prime ministers Luigi Di Maio and Matteo Salvini are eager in getting their key campaign promises though paying little attention to European Union debt and deficit rules.

 Reforms include basic income for unemployed individuals and the introduction of a flat tax - an enormous tax cut for all Italians with a detrimental impact on the Italy’s finances.

 Tria is set to present the 2019 budget by the end of the month. European senior representatives including European Central Bank President Mario Draghi have called on Italy to maintain a sustainable debt and deficit.

 According to Italian statistics agency ISTAT estimates, Italy’s deficit was revised up to 2.4 percent from 2.3 percent and debt has been lowered to 131.8 percent. In an address to parliament Tria said “the 2019 budget will start by introducing some of the measures the ruling parties agreed on.”

 Luigi Di Maio attacked the finance minister on Thursday because of his alleged reluctance to submit costly manoeuvres in the 2019 budget. “A proper cabinet minister finds money for public spending” said Di Maio.

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