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Italy Today

Italian news in English

Friday, September 20, 2024

Italy's Budget Plan Faces EU Flexibility

Published: 2024-09-09

Italy's government is navigating a complex financial landscape as it prepares to present its structural budget plan to the European Union.

The plan, initially expected by September 20, may face delays, with some EU countries submitting theirs by mid-October.

This delay allows Italy to incorporate new national economic data, potentially revising GDP forecasts upwards.

The EU has shown flexibility on deadlines but insists on stricter budgetary rules, making it challenging for Italy to cover new expenses.

The government is considering revising tax incentives and public guarantees to meet these demands.

Meanwhile, Italy's fiscal surplus could be used to ease future spending constraints, highlighting the delicate balance between immediate financial needs and long-term fiscal responsibility.