BRUSSELS/ROME—The European Commission on Dec. 19 reached a deal with Italy over its 2019 budget, avoiding disciplinary steps against Rome, ending months of verbal sparring and buoying Italian bonds and shares.
The Commission in October rejected the budget which included a deficit of 2.4 percent of gross domestic product, up from 1.8 percent this year, saying it would not cut Italy’s large debt and was an “unprecedented” breach of EU fiscal rules.
