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Breakingviews – Italy’s Meloni will dodge EU collision on budget
Breakingviews - Italy’s Meloni will dodge EU collision on budget,Rightist Italian premier Giorgia Meloni will avoid a fiscal row with Brussels. Her first ever draft budget, to be discussed on Monday, targets a deficit of 4.5% of GDP in 2023. This is above the traditional 3% EU deficit cap. But with EU fiscal rules suspended since the pandemic and at just 1 percentage point above what predecessor Mario Draghi had earmarked, Meloni’s budget plans don’t look too aggressive for the high-debt country. That should keep the spread between Italian and German 10-year government bonds close to the current 190 basis points, well below euro zone crisis peaks.

Breakingviews – Italy’s Meloni will dodge EU collision on budget

Rightist Italian premier Giorgia Meloni will avoid a fiscal row with Brussels. Her first ever draft budget, to be discussed on Monday, targets a deficit of 4.5% of GDP in 2023. This is above the traditional 3% EU deficit cap. But with EU fiscal rules suspended since the pandemic and at just 1 percentage point above what predecessor Mario Draghi had earmarked, Meloni’s budget plans don’t look too aggressive for the high-debt country. That should keep the spread between Italian and German 10-year government bonds close to the current 190 basis points, well below euro zone crisis peaks.