Italy needs to respect EU budget rules and build up cash buffer - IMF

FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. September 4, 2018. REUTERS/Yuri Gripas/File Photo - Copyright Yuri Gripas(Reuters)

By Reuters

Published on 12/10/2018 - 8:34 GMT+2

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NUSA DUA, Indonesia (Reuters) - Italy needs to respect European Union budget rules with its 2019 budget and build a cash buffer to cushion the next economic downturn, the head of the International Monetary Fund's European department Poul Thomsen said on Friday.

"We do think that a fiscal relaxation of that magnitude in Italy in the current circumstances is not correct," he told reporters at the IMF's annual meetings.

"It is important that Italy has a 2019 budget that is consistent with the European fiscal framework."

(Reporting By Francesco Canepa)

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Italy needs to respect EU budget rules and build up cash buffer - IMF

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