Italy stands down. The government in Rome announced a budget deficit target of 2.4 percent of gross domestic product for 2019 – well above the previous government’s target of 0.8 percent but well below the EU-mandated target of 3 percent. The announcement is a monument to compromise among the factions of Italy’s fragile governing coalition. At least one Italian newspaper reported that the economy minister had reached an understanding with Brussels for a figure of 1.6 percent and had insisted, under threat of resignation, he would go no higher than 1.9 percent. Notably, the announcement stipulated that the deficit figure would cover 2019 only, though the justice minister said it would cover 2020 and 2021, raising questions over how much more fighting we can expect to see in Italy and how much the European Union will chastise Italy for issuing a figure it didn’t want, albeit one that abides by its directives. These questions are far less controversial than the ones that would hav
Daily Memo: Italy’s Capitulation, China’s Economy, NAFTA’s 9 Lives
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