Italy tells Commission it won’t revise budget plan

ROME —  The Italian government will not budge from its position on the country’s budget plan even though it realizes it is in breach of EU rules.

In a three-and-a-half page letter sent on Monday to Commissioners Pierre Moscovici and Valdis Dombrovskis, Finance Minister Giovanni Tria writes: “Italy is aware it has chosen a path that isn’t in line with EU rules. It was a hard decision but necessary in order to bring the country’s GDP back to pre-crisis levels and considering the ongoing economic difficulties for Italians.”

Tria goes on to address the three objections raised by Moscovici and Dombrovskis in their letter to him last week, saying the government is confident it can achieve the ambitious growth targets it has outlined. Tria’s letter explains that the government will increase public investments and implement a number of significant structural reforms that should help trigger such growth.

However, should Italy’s “growth trajectory evolve differently to what we expect, we would intervene,” he writes.

Tria concludes the letter by saying although the positions of Rome and Brussels are different, he hopes a “constructive dialogue” within the EU rules framework can continue. He says Italy’s place is “in the eurozone.”

“We are confident that our explanations will help clarify the contents of our budget and that this won’t expose Italy or other member states to financial instability. We believe the strengthening of Italy’s economy will be beneficial for the entire eurozone,” Tria writes.

Separately, Prime Minister Giuseppe Conte said at a press conference in Rome on Monday: “We aren’t nuts and before putting together the budget, we studied Italy’s economy thoroughly. And if we don’t change direction, Italy would end up in a recession.”