EU Moves to Discipline Italy Over Budget, Rome Remains Defiant

EU Moves to Discipline Italy Over Budget, Rome Remains Defiant
European Union flags are seen outside the EU Commission headquarters in Brussels, Belgium on Oct. 14, 2018. Francois Lenoir/Reuters
|Updated:

BRUSSELS/ROME—The European Commission took the first step on Nov. 21 toward disciplining Italy over its expansionary 2019 budget after Rome refused to change it, raising the stakes in a dispute that has alarmed the whole eurozone and could eventually lead to fines.

The Commission said the Italian draft increased the 2019 structural deficit, which excludes one-offs and business cycle swings, by 1.0 percent of gross domestic product rather than cut it by 0.6 percent as required by EU laws.