(Bloomberg) -- Prime Minister Giuseppe Conte said Italy will produce a “credible” budget for 2019 to ensure investors retain their confidence in the country.
Speaking to reporters before a summit of European Union leaders in Salzburg, Austria, Conte said next year’s budget deficit won’t exceed 2 percent of output.
“The government will produce a credible, courageous budget which responds to demands of citizens,” Conte said. “We must be credible for markets because we want investors to invest in Italy.”
The Italian premier is battling to keep his spending plans in line with European budget rules as his two populist deputies fight for resources to deliver on their election pledges. If the tax cuts promised by the anti-immigration League and the extra benefit spending the anti-establishment Five Star Movement demands were fully implemented the deficit would balloon to as much as 5 percent.
To contact the reporter on this story: John Follain in Salzburg at jfollain2@bloomberg.net
To contact the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net, Ben Sills, Richard Bravo
©2018 Bloomberg L.P.
Advertisement