The EU plays hardball with Italy. Despite rumors to the contrary, the EU and Italy did not reach a deal yesterday on Italy’s revised budget proposal – and they don’t seem likely to reach one today. According to Italian newspaper Corriere della Sera, the European Commission wants Italy to shave another 3 billion euros ($3.4 billion) off the current budget before it signs off. The problem is that it took the Italian government quite a bit of politicking to come up with a revised budget that lowered the deficit target to 2.04 percent from 2.4 percent. Corriere della Sera also reported that Italy’s economy minister told commission Vice President Valdis Dombrovskis that the Italian government probably could not bring the deficit any lower than 2.04 percent because doing so could jeopardize its ability to implement a universal basic income and decrease the retirement age. So the EU is asking yet another member state to introduce austerity to combat slumping economic growth. Why is th
Daily Memo: Budget Talks in Italy, Peace Talks in Abu Dhabi, Pessimism in Germany
All the news worth knowing today.