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Why has Italy caused a fresh conflict with the EU?


Djamel Brahimi

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Italy has cut its forecast for economic growth and has raised its projected budget deficit which will more then likely cause a fresh conflict between the Italian government and the EU. 

GDP is only forecast to rise 0.1% this year which is down from the previous estimate of 1%, while the deficit is forecast at 2.5% of GDP which is above the planned measures of 2.4%.

This deficit forecast could could reignite the conflict with the EU commission after there was months of negotiations at the end of 2018 which resulted in Italy agreeing to stick to a deficit of 2.04% of GDP. It seems now that Italy are unable to stick to these problems as they do not have the growth or the money to commit to the agreements made. This has put Italy on collision course with the EU yet again and with the country already struggling economically it will be interesting to see how the EU reacts.

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