Italy brushes off downgrade as it plans European Union budget response | AP business

Italy's euroskeptic government is pushing for a reduction of tensions between the European Union and Russian Federation but risks isolation in Brussels as EU partners seek instead stronger measures to deter Moscow from interfering in EU affairs.

This comes after Italy's government announced its budget for the next fiscal year, with a projected deficit of 2.4 percent of GDP - exceeding that of the previous budget threefold.

Italian Premier Giuseppe Conte, who is due to meet Putin in Moscow next week, has also slammed the sanctions, saying: "They damage our companies, which we intend to protect, as well as Russian society".

France's president Emmanuel Macron has been pushing for reforms, including a eurozone budget, that irked Germany and the Netherlands among other fiscal hawks that are anxious that rich member states would have to hand out more poorer, less competitive European Union countries.

Meanwhile, the pressure on Italian assets continue to mount after the European Commission called Italy's spending plans "excessive" in a letter to Rome, even before the formal assessment of the fiscal plan is being released.

The European Commission has already warned Italy that its higher-than-expected targets represent an unprecedented deviation from EU budget rules.

Meanwhile, market participants say the recent euro devaluation against the pound sterling could be connected to Italy's budget woes. "Nor a euro without Italy or Italy without the euro".

The EU commission chief said Italy have used all the elements of flexibility of EU rules, and that leaders don't want to add more room for manoeuvre for Italy. The ratings firm also added that the government's policy proposals did not offer a set of reforms that could lift Italy from its anemic economic growth.

The head of one of Italy's two ruling parties says the government won't fall over a dispute on the budget draft, which would offer a tax amnesty to Italians with accounts overseas.

Political analyst Wolfango Piccoli of Teneo Intelligence said the commission is facing a tough dilemma and must walk a fine line with Italy's budget.

The coalition government of Salvini's far-right League party and the Five Star movement (M5S) was to meet Saturday to discuss its budget.

Bonds plunged Thursday as the European Union's executive body dispatched a letter to the Italian government requesting changes to its draft budget plan by October 22.

The concerns about the budget Italian, however, have pushed the rating agency Moody's to lower Friday night the rating of Italy by one notch to "Baa2" to "Baa3", the last level of investment grade.

"We'll explain", she said his deputy Prime minister, Luigi Di Maio, a leader of the Movement 5 stars (M5S, antisystème), while hammering: "there is no willingness to leave the euro zone and the european currency".


Popular
  • Meghan Markle's subtle tribute in $6,000 outfit

    Meghan Markle's subtle tribute in $6,000 outfit

    Despite the overcast weather, large crowds descended on the golden sands to catch a glimpse of Harry and Meghan in the flesh. The Duchess of Sussex woke up at 4.30am to do yoga and told a group at Bondi Beach it was "so good for healing your mind".
    ‘Won’t accept the blame if GOP loses in midterm polls’

    ‘Won’t accept the blame if GOP loses in midterm polls’

    But many in Trump's base, including women, apparently feel otherwise: They tweeted support for the president and attacked Daniels. Industrious tweeters also deployed a number of top-shelf memes to express their artistic creativity with edits to the picture.
    Police Department Goes Pink For Breast Cancer Awareness Month

    Police Department Goes Pink For Breast Cancer Awareness Month

    It is estimated that each year, 252,710 women in the U.S will be diagnosed with breast cancer and that more than 40,500 will die. Money raised will help fund lifesaving research and free services including Daffodil Centres and the Freephone Cancer Nurseline.
  • Facebook's new video chat device met with privacy concerns

    Facebook's new video chat device met with privacy concerns

    The Smart Camera and Smart Sound will use AI technology that runs locally on Portal , not on Facebook servers. More recently, Facebook said that hackers managed to pierce its security to break into 50 million accounts.
    Met Eireann warns Wicklow to be prepared for storm tonight

    Met Eireann warns Wicklow to be prepared for storm tonight

    The Met Office has issued an amber weather warning for rain across much of south Wales for tomorrow and Saturday. Where flooding may occur there is a chance of delays or cancellations to train and bus services.
    Hurricane Michael Decimates Florida Panhandle, Kills at Least One

    Hurricane Michael Decimates Florida Panhandle, Kills at Least One

    I've prayed for them every day, and with every hurricane that comes through, you never know what to expect from a hurricane. On Wednesday, Google CEO Sundar Pinchai said the company will donate $1 million to recovery efforts for Hurricane Michael .
  • 2 die in fighter jet crash in Ukraine, US pilot

    2 die in fighter jet crash in Ukraine, US pilot "involved"

    The General Staff of Ukraine's armed forces said the two-seat Su-27UB went down in the Kmelnitskyi region. The search and rescue group found bodies of two servicemen, the official confirmed .
    White woman backs away from claim that black child groped her

    White woman backs away from claim that black child groped her

    In the video and in a subsequent interview with the station, she alleges the mother of the children escalated the situation. Later, the woman spoke of the whole ordeal to PIX-11. "It's not the first time I've been grabbed on the a** by a kid".
    Wike leads Rivers delegates out of convention venue as Atiku emerges victor

    Wike leads Rivers delegates out of convention venue as Atiku emerges victor

    Dankwambo is a 56-year-old former Accountant General of the Federation and former Accountant General of Gombe. Mr Abubakar was in 1998 elected Governor of Adamawa State.
  • Space Station Crew Stranded in Orbit After Soyuz Failure

    Space Station Crew Stranded in Orbit After Soyuz Failure

    NASA said flight controllers could operate the space station without anyone on board if the Russian rockets remain grounded. Soyuz flights are suspended while the Russian space agency Roscosmos investigates the cause of the failure.

    Google+ Is Shutting Down Following Security Breach

    The tech firm kept quiet for months about a security flaw that gave third-party apps access to private information on the Google + social network.
    Interpol Chief Reported Missing After Trip to China

    Interpol Chief Reported Missing After Trip to China

    Earlier, the French police launched an investigation into the disappearance of Hongwei after the statement of his wife. Mei Hongwei, a citizen of China. "Interpol's General Secretariat headquarters will not comment further".

CONNECT