5SM’s Luigi Di Maio believes voters will punish Brussels next year (Image: GETTY)
But the European Commission is preparing for a meeting on Wednesday which could pave the way for disciplinary measures against Italy and the possible freezing of EU cash to the troubled nation. The European Commission last month rejected Italy’s 2019 budget, saying it flouted a commitment to lower the deficit and did not guarantee a reduction in the debt, the second highest in the euro zone as a proportion of GDP. Italy’s coalition, comprising the anti-establishment the Five Star Movement (5SM) and far-right League, has refused to change the main points of the budget, saying it will boost the economy via tax cuts, a lower retirement age and higher welfare spending.
Citizens will vote in the European elections and will cause a big shake up
Mr Di Maio, who is also leader of 5SM told Corriere della Sera daily on Sunday he was confident that Rome and Brussels could avoid a collision, predicting that the Commission would take a different approach after May’s elections which might boost anti-austerity parties.
he leader of the Five Star Movement said: “Citizens will vote in the European elections and will cause a big shake up.
“We are ready to discuss things around a table, but they cannot ask us to massacre Italians.”
Italy has incurred the wrath of Eurocrats by setting a budget representing a spend of 2.4 percent of GDP next year, which would amount to just over €44billion, which Brussels fears will simply push the country’s national debt, currently closing in on €2.5trillion, still higher.
Coalition partner Matteo Salvini has said sanctions against Italy would be “ungracious” (Image: GETTY)
Mr Di Maio said the government was willing to sell real estate assets, reduce waste and introduce safeguard clauses to ensure the deficit will not exceed the target of 2.4 percent of output in 2019.
However, he insisted: “The main reforms of the budget must remain in place.”
In Rome, Deputy Prime Minister Matteo Salvini, leader of coalition partner Lega, said any budget sanctions against Italy would be “ungenerous”.
He insisted Italy did not want to demolish the EU but wanted to change some rules which damaged EU citizens including its own.
The European Commission is expected to start disciplinary steps against Rome next Wednesday, a procedure which could eventually end in unprecedented fines for Italy.
Separately, the chief of Italy’s richest regional business lobby, criticised the ruling parties for using the budget as a tool to boost their own popularity.
Carlo Bonomi, head of regional industry lobby Assolombarda, told state-owned television RAI: “We are very worried about the decision that have been taken and that are putting the economy at risk.”
Italian industrialists believe a lack of investment is the main problem of the Italian budget drafted by the populist coalition, Mr Bonomi added.
Commission Vice President Valdi Dombrovskis said the Commission wanted explanations (Image: GETTY)
He said: “The clear project is to cash in the electoral dividend rather than boosting the economy.”
The European elections are shaping up to be a battle between centrist, pro-EU parties and nationalist far-right formations that want to stop immigration.
Euro zone finance ministers remain worried about Italy’s budget row with the European Commission and are waiting for the next move from the EU executive this week before formally stepping up their pressure on Rome, top officials said on Monday.
Dutch Finance Minister Wopke Hoekstra said today: “We are all worried about the existing situation. Clearly this is a matter that not only involves Italy, but all of us.
“It is imperative that the Commission does what is in the interest of all the different European countries.”
Brussels is expected to adopt a report on Italy’s debt on Wednesday, EU officials told Reuters last week, a possible first step in a disciplinary procedure that could eventually lead to fines and the freezing of EU funds to Rome.
Commission Vice President Valdis Dombrovskis declined to detail decisions to be made on Wednesday, but underlined that the EU executive was preparing “a follow-up” to a request sent to Rome last month in which it urged explanations over its large debt.