MNI: Dombrovskis: Italy Plans 'Probably Not' in Line With Prog

By David Thomas

     BRUSSELS (MNI) - European Commission Vice President Valdis Dombrovskis

indicated Thursday that the new Italian coalition government's proposals on

public spending would "probably not" be in conformity with its European

Union-approved stability program.

     Speaking at the European Business Summit, Dombrovskis avoided direct

comments on the new coalition but said that the EU would return to assess the

Italian fiscal situation in the spring of 2019 based on the outcome for 2018.

     The commissioner noted that Italy would have to submit a new stability

program once a government is in place.

     The EU has already called on Italy to reduce its budget deficit by 0.6% of

GDP but the 5-Star Movement and the Lega coalition have outlined expansionary

new spending plans, including proposals for a basic income and the unwind of

flagship pension reforms.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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