MILAN (Reuters) – Italy’s government expects the European Commission to take on Tuesday the unprecedented decision of asking a member state to amend and resubmit its draft budget, a government source said on Sunday.
Italy has come under fire in Brussels with a plan to lift the budget deficit to 2.4 percent of domestic output next year from 1.8 percent in 2018. The EU Commission has labelled Rome’s 2019 draft budget an unprecedented breach of EU fiscal rules.
Italy will on Monday send a letter to the Commission explaining its reasons for sticking to the 2.4 percent goal, Deputy Prime Minister Luigi Di Maio said on Sunday.
The source said the Commission was expected to decide the following day to reject the draft budget and ask for a resubmission.
A Commission spokesman said that the Commission had expressed its “serious concerns” over the draft budget to the Italian authorities, seeking further details to facilitate an assessment.
“We have asked for the views of the Italian government by noon on Monday, 22 October,” the spokesman said.
(Reporting by Giuseppe Fonte in Rome, additional reporting by Robin Emmott in Brussels, writing by Valentina Za; Editing by Kirsten Donovan)