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Conte’s New Coalition Running Short on Time to Present Budget Draft

Prime Minister Giuseppe Conte’s new coalition, which saw ousting of the former Deputy Prime Minister Matteo Salvini, is already facing its biggest challenge in just a little over month since it took the charge.

Once at odds and now working together, Giuseppe Conte is poised to enter a crucial week with the Democratic Party. Conte’s new coalition is due to present a draft of budget to the European Commission by October 15, before final approval by the end of the year.

Interestingly, with not much time left until deadline, the two parties still continue to clash over the number of reforms that they had forecasted to include in the 29 billion-euro ($32 billion) plan, La Repubblica reported.

The blueprint includes, income support for the families with kids, changes to pensions and the introduction of a minimum salary. The points, which are central to the conflict are to be settled before a cabinet meeting to approve the budget. “The coming days are going to be feverish,” Prime Minister Giuseppe Conte said on Saturday to ANSA.

The problem with the approval of budget has been a prime concern for Italy, with second highest debt in the Europe after Greece. The factor, which was downplayed by Conte last year, who noted: Debt “must be kept under surveillance, but it isn’t so scary.”

Now, as the same situation lingers on, the need for deficit financing to pursue reforms would once again rise. However, a slight difference to the approach is expected, since the Finance Minister Roberto Gualtieri has portrayed to contain the deficit at a level expected by the European Union partners, while averting an automatic sales-tax multiplication that could put economy at the risk of stagnation.

However, with the risk averted, around 23 billion euros of the total allocated funds would be absorbed. The situation would thus, minimize the opportunities to channelize in other growth prospects.

Nonetheless, on Saturday, the prime minister showcased that he still has confidence in his plans and reiterated that his government would still manage enough funds to avoid the tax hike, according to ANSA.

Rome has set a deficit target at 2.2 percent of the GDP, which would increase its overall deficit by 0.1 per cent. Meanwhile, the parliamentary approval process will begin on October 20 after the budget is submitted to the European Union. The Commission to which would give its first assessment by November 30.

Clearly, Conte’s new coalition has still the same or even more problems than he had with Matteo Salvini in the ranks. While, it cannot be denied that Salvini was a clear supporter of Eurosceptic norms, it also cannot be denied that this government only had a common enemy and no common goal to come together.

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