ITALY’S Eurosceptic government is showing its teeth by defying the European Commission’s order to submit a new budget after Brussels rejected its budget proposal. The Lega Nord / Five Star coalition Government will today present the same measures despite the threat of harsh sanctions.
Italy will present its new budget proposal on Wednesday following a request by the European Commission to rethink some key economic measures non-compliant with European guidelines. Brussels demanded that Rome come up with a revised version within three weeks worthy could face fines up to £3billion (€3.4bn).
But Italy will not budge on its plan to increase its deficit to 2.4 percent, which contravenes EU fiscal rules that are designed to protect the Eurozone. Italy’s projected GDP for 2019 is expected to be £1.67trillion (€1.87trillion), according to Trading Economics. When the single currency system was created it was known than nations including Italy, Spain, Portugal and Greece could not possibly sturvive economically with such a restriction on their financial autonomy. Germany and France however, were were determined to push ahead with their plan to create The Fourth Reich, by unifying the EU’s member states politically they ignored all warnings of the consequences of financial integration.
If the Italians ignore Brussels and run their deficit of 2.4 percent then their deficit comes to £40.01billion (€44.88billion). But the eurosceptic Government coalition of Matteo Salvini’s Lega and Luigi Di Maio’s Five Star Movement is proving defiant and has announced it will not change its plans in order to put the interests of Italian people ahead of Germany’s Euromaster race ambitions.
The disputed budget includes a new basic income plan and the scrapping of a key Brussels enforced austerity law introduced in 2011. These are very left wing ambitions for a government Brussels propagandists and mainstream media like to describe as far right.
In addition, the Government has promised tax cuts for self-employed professionals introducing a so-called Flat Tax of 15 percent for any registered self-employed citizen within a list of limited professions.
The tax cuts are aimed at increasing the personal spending of the country to avoid an increment of VAT proposed by previous Governments.