German Bundesbank President Jens Weidmann has warned against Italy’s budget, which includes a controversial multi-billion fiscal stimulus to boost economic growth.
On December 23, Weidmann told the Welt am Sonntag newspaper: “The original promise to cut the deficit has been compromised. It makes it difficult for the Commission and other governments to press for solid state finances in the future.”
On December 23, Rome’s upper house voted to approve the budget deal agreed with the EU, ahead of the year-end deadline for final approval by parliament.
Under the deal agreed with the European Commission last week, Italy’s populist coalition revised its spending plans to avoid disciplinary action from Brussels, lowering its 2019 deficit target from 2.4% to 2.04%.
According to the Italian News agency ANSA, the Italian senate voted in favour of the deal by 168 votes to 63. Now it will move to the lower house.