BRUSSELS: Italy’s Prime Minister defended its free-spending budget on Thursday, brushing off criticism from Brussels as the European Commission stepped up pressure over a draft it labeled an unprecedented breach of EU fiscal rules.
Giuseppe Conte also faced discontent over the 2019 fiscal plan at home, calling a meeting of the government for Saturday to stave off an emerging internal rift over conditions of a partial tax amnesty.
The draft, signed off by Italy’s cabinet on Monday, will hike the deficit at a time when EU regulations say it should be falling, boost welfare spending and cut the retirement age.
In the first formal step of a procedure that could lead to Brussels rejecting the budget and to fines against Italy, the Commission sent Rome.
