ROME—The Italian government on Oct. 4 dismissed concerns that the European Commission would reject its plan to raise deficit spending next year and signaled that it would not backtrack, even under market pressure.
After a selloff hit Italian bonds on Oct. 2, the government made up of the anti-establishment 5-Star Movement and the right-wing League on Oct. 3 watered down its original plan to keep its deficit steady at 2.4 percent of gross domestic product (GDP) in 2020-21.
