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/MNI SOURCES: ITALY EYES DEFICIT TRIM TO......>

ITALY
ITALY: /MNI SOURCES: ITALY EYES DEFICIT TRIM TO EASE TENSIONS WITH E.U.: Italy's
government is expected to amend lower its deficit objective for 2019, although
any suggestions the new target could be lower than 2% are "absurd", sources
close to the budget talks told MNI. 
- As an olive branch to Brussels and to sooth nerves in roiled financial
markets, Rome is expected to aim at a new deficit target of between 2.0% and
2.2%, down from the 2.4% target set in the recent 'People's Budget'.
- Any fixes to the budget law have certainly been partly influenced by rising
tensions with Brussels and the increasing bond yield spreads, sources said.
- For more see email/MNI Main Wire at 1545GMT, or contact us.

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