The Italian budget for 2019 is incompatible with the reduction of debt that at over 130% of GDP is still a “crucial vulnerability,”

The European Commission told Italy on October 30 that its budget for 2019 in incompatible with the reduction of debt. At over 130% of GDP, it is still a “crucial vulnerability”.

The European Commission’s economic and financial affairs directorate Director General Marco Buti sent a letter to Rome’s Treasury Director-General Andrea River. He says: “such a high public debt limits the government’s room to manoeuvre for more productive spending to benefit its citizens”.

As reported by the Italian news agency ANSA, Buti also says the high debt remains a concern for the eurozone.

Italy’s economy ministry said earlier it had received a new letter from the European Commission asking for “a report on the so-called ‘significant factors’ that may justify a debt/GDP ratio with a less marked reduction than that requested,” the ministry said on October 30.

It said “the reply must be sent by November 13”.