Italian Prime Minister Giuseppe Conte has issued a statement and emphasized that his country will “continue on the path” set out by its populist government, despite Brussels’ demand to change the draft budget. The target spending holds the key for Conte, and he has showed signs that it is non-negotiable.
The party has faced accusations that the country’s economy has been stagnant in the last five months, however, the Prime Minister Conte has argued that the real benefits of its policies will be noticeable only from 2019.
“The positive effects of our reforms will be seen from 2019, our revolution has just begun”. Adding, “We put the first pieces, but the work to be done is ambitious: we want to change Italy from top to bottom.”
Italy’s 2019 draft budget was rejected by Brussels last month and it asked Rome to issue a revised version within three weeks or else face a fine of up to £3 billion. Italy’s stand has however, remained stagnant; insisting that it has increase its deficit to 2.4 percent in order to carry out the reforms. The country is planning to introduce basic income and tax cuts, which is against EU fiscal policies.
A blueprint prepared by Trading Economics also suggests that Italy’s projected GDP for 2019 will be £1.67 trillion. Howbeit, if it ignores Brussels and sets the deficit spending at 2.4 percent of the country’s GDP, the debt will then reach £40.01 billion.
Mr Giuseppe Conte once again defended his stand and stated that it would have been much easier for him to increase the VAT, but that would have triggered a recession.
Conte has always been extremely confident about his policies and has stated the new policies have the potential to unlock the best for Italy. Besides, the fiscal maneuver according to him will increase the enormous growth potential and create a favorable environment for the investors.
Clearly, moving forward with an ode to increasing the opportunities in Italy, Giuseppe Conte has vision, which separates him from others. However, if the policies do not function as expected, the nation’s economy can fall up to an unimaginable extent.