Thursday , May 26 2022

The Italian bends to the storm in the budgetary crisis


Stocks and banks raised on defect adaptation scheme reports

Italian stocks on Monday fell on signs of a decline by the Italian Government, which has set its budget deficit plans on a path towards penalty measures by the European Union. The government source yesterday said the ruling coalition was discussing reducing next year's budget deficits target to up to two percent of GDP, rather than 2.4 percent, as in the draft budget.

Deputy Italian Prime Minister Luigi de Mayo said the Italian government was committed to reform, but a dialogue with the EU could be held on the budget deficit. "If we have to reduce the expected shortfall in the discussions, it's not important to us," said Bloomberg De Mayo, leader of the five-star movement, as he said in a radio interview yesterday. "The EU problem is not the problem with 2.4%, but the important thing is that no-one has excluded from the key actions," he said.

According to reports yesterday, an officer of the Alliance, one of the two parties representing the Italian government, said that the administration was considering setting a new deficit target, which is higher than 2.1 and cant of CMC. The European Commission has announced that it rejects the Italian government's plan to spend for 2019, contrary to the financial rules of the European Union; the plan states that the budget deficit rate of 2.4% and the economic growth rate of 1.5% next year.

The European Commission, the executive branch of the European Union, has offered legal action against Italy, which could lead to heavy fines, due to "particularly severe non-conformity" with the eurozone budget rules.

The Deputy First Minister of Italy and Your Minister, Matteo Salveni, said on Sunday that Italy could give up in conflict with the European Commission by modifying its controversial deficit plans.

For the first time, Salfini, the leader of the extreme party on the right hand side, who usually takes the most conflicting positions with Brussels, is clear that a 2.4 per cent adjustment is not illegal. "I do not think anyone insists, if the budget helps the country grow, the deficit could be 2.2 or 2.6 percent," said Salvini in an interview with a news agency We will be assigned

This changed attitude since Saturday evening, when Salveni said there may be no regeneration. At the time, he also talked about the need to "accurately assess time and cost" budget procedures.

The fall fell after lunch on Saturday in Brussels between the Italian Prime Minister Giuseppe Conte and European Commission President Jean-Claude Juncker. "I am confident that dialogue could avoid operating a penalty from the European Union," said Conti after the talks. I am always ambitious as I negotiate. "

It is expected that Conte, Salfini and the other member of the government, the deputy prime minister and leader of the five-star organization, Luigi de Mayo, will meet in Rome to discuss budget plans.

"We made it very clear that I was not a war with Italy," said Juncker on Sunday. "I love Italy."

For his part, Conte promised to continue to "revolutionize" Italy. Italian prime minister, a legal professor in Florence who has no previous political experience, said he was discussing the budget at the side of the meeting with leaders, including Angela Merkel and Emmanuel Macaron.

"There is a good climate and mutual trust," said Conte to reporters after the EU summit on Sunday. He said he could meet popular deputies, Matteo Salveni in favor of the anti-immigrant League, and Luigi de Mayo of the five-star anti-institutional movement. "We are confident that we can complete the process to meet both sides," he said.

It was asked if he would consider a 2.4 per cent deficit next year with Salvini and Mayo, said Conte: "We are always discussing reforms and discussing what is needed to achieve the promises we have made."

Under pressure from Salvini and Mayo, euro suspects, Conte held on the BRICEST summit, a large file given by Leonker at a Saturday evening lunch called "New Way to a Better Future … New Italy Strategy for Social and Economic Growth. "

"This is what we're talking about," he said. "We mentioned how we will revolutionize the country within five months and we will continue to do so."

His office said that the report detailed the previous reforms, and those that will be implemented over the coming weeks, focusing on a scheme to promote investments.

Following the break from the Italian side, the European index Stoxx 600 rose 1.1 percent yesterday, the leading eurozone index index 1.3 percent and the Italian stock index index dropped by 3 per cent.

The Italian banking sector index dropped 53 percent, possibly the strongest everyday performance since June. UniCredit and Intesa San Paolo led to Europe's largest European earnings and earnings with 4.7 and 4.3 per cent earnings respectively. Obi Banka, BPM, BEP Bank and MediPenka rose between 3.7 and 4.1 per cent.

Source link