EU
Italy facing possible financial sanctions
June 19, 2019 - The European Commission says that Italy is breaching EU rules over its growing government debt, starting a process that could lead to financial sanctions. Italy’s debt grew to 132.2 percent of GDP in 2018, second only to bailed-out Greece.
If the Economic and Financial Committee agree with the European Commission’s findings, that Italy is breaching EU rules over its mounting debt, disciplinary proceedings will likely begin.
Italy escaped disciplinary action in 2018, when it reached an agreement with the commission over its 2019 budget.
Recently revealed official data shows Italy’s debt grew to 132.2% of GDP in 2018, the largest ratio in the EU after bailed-out Greece. EU forecasts suggest it will only increase over the next two years, despite EU rules that say it must lower.