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Tuesday, October 23, 2018

EU rejects Italy's budget, raising stakes in dispute

BRUSSELS (AP) — The European Union set up a high-stakes battle with Italy, one of the bloc's biggest economies, over who has final control over a member state's budget after the executive Commission took the unprecedented step of ordering the country to revise its public spending plans. In a move that escalates a monthlong standoff, the EU said the populist government's budget for next year is out of line and breaks earlier promises to lower public debt. Italy's debt load is the second-highest in Europe, after Greece, and there are worries that losing control of spending could rekindle financial turmoil in Europe. The populist Italian government says the sharp increase in spending is needed to jumpstart growth after years of malaise.


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