Italy. Report prepared in accordance with Article 126(3) of the Treaty on the Functioning of the European Union

Author (Corporate)
Series Details COM (2019) 532
Publication Date 05/06/2019
Content Type

Summary:

The European Commission published in June 2019 a Report under Article 126(3) of the Treaty on the Functioning of the EU (TFEU), in which it reviews compliance by Italy with the deficit and criteria of the Treaty.

Further information:

Article 126 of the Treaty on the Functioning of the European Union (TFEU) lays down the excessive deficit procedure (EDP). Article 126(3) TFEU provides that, if a Member State does not fulfil the requirements in specified criteria, the European Commission is requested to prepare a report. This report - which represents the first step in the EDP - analyses Italy's compliance with the debt criterion of the Treaty in 2018, with due regard to the economic background and other relevant factors.

The document follows a number of other reports in 2018 which highlighted the risk of significant deviation from the adjustment path towards the medium-term budgetary objective. The concerns were addressed by the Italian authorities by amending its budgetary plans for 2019. However, data provided by the Spring 2019 economic forecast showed Italy's non-compliance with the debt reduction benchmark in 2018.

This report was published as part of the 2019 European Semester Spring Package.

The Council of the Europena Union's Economic and Financial Committee endorsed on 11 June the Commission's understanding that disciplinary procedure for excessive deficit against Italy was warranted. The Eurogroup held a discussion on the Italian situation on 13 June.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2019:532:FIN
Alternative sources
  • https://ec.europa.eu/info/files/report-commission-italy-report-prepared-accordance-article-126-3-treaty-functioning-european-union_en
  • https://ec.europa.eu/info/sites/info/files/economy-finance/com2019_532_it_en.pdf
Related Link(s)
Commentary and Analysis
Deutsche Welle, 05/06/2019: The fine art of defusing Italy's budget row https://p.dw.com/p/3JsAB
Bloomberg, 05/06/2019: There's Only One Way to Fix Italy's Mess https://www.bloomberg.com/opinion/articles/2019-06-05/italy-vs-the-european-commission-here-s-how-to-fix-the-mess
Euro|topics, June 2019: Deficit: can Brussels bring Italy to heel? https://www.eurotopics.net/en/221207/
Bloomberg, 12/06/2019: Italy and EU Can’t Agree on Country’s Structural Deficit https://www.bloomberg.com/news/articles/2019-06-12/italy-and-eu-can-t-agree-on-country-s-structural-deficit-chart
Open Europe: Blog, 06/06/2019: Is Italy heading towards a debt crisis? https://openeurope.org.uk/today/blog/is-italy-heading-towards-a-debt-crisis/

News
Politico, 05/06/2019: Brussels puts Italy on notice for breaching EU spending rules https://www.politico.eu/article/brussels-puts-italy-on-notice-for-breaching-eu-spending-rules/
The Guardian, 05/06/2019: EU could fine Italy £3bn for breaking spending and borrowing rules https://www.theguardian.com/world/2019/jun/05/eu-could-fine-italy-3bn-for-breaking-spending-and-borrowing-rules
Euronews, 05/06/2019: 'My door is open' EU Commissioner tells Italy over debt https://www.euronews.com/2019/06/05/my-door-is-open-eu-commissioner-tells-italy-over-debt
RFI, 05/06/2019: EU recommends disciplinary action against Italy over debt http://en.rfi.fr/economy/20190605-european-commission-reccommends-disciplinary-action-against-italy-over-debt
Reuters, 05/06/2019: Brussels targets Italy over rising debt, reviving dispute https://www.reuters.com/article/idUSKCN1T6148
The Local (Italy), 05/06/2019: EU puts Italy on notice over spend-happy budget https://www.thelocal.it/20190605/eu-puts-italy-on-notice-budget-deficit-debt
The New York Times, 05/06/2019: European Union Warns Italy to Reduce Spending and Borrowing https://www.nytimes.com/2019/06/05/world/europe/european-union-italy-spending.html
EurActiv, 06/06/2019: Italy’s Di Maio, Salvini slam EU debt warning https://www.euractiv.com/section/economy-jobs/news/italys-di-maio-salvini-slam-eu-debt-warning/
BBC News, 06/06/2019: Italy risks disciplinary action for violating EU debt rules https://www.bbc.co.uk/news/world-europe-48536954
Deutsche Welle, 11/06/2019: Juncker criticizes Italy's excessive deficit as EU penalties loom https://p.dw.com/p/3KBuJ
The Local (Italy), 11/06/2019: Italy 'absolutely determined' to avoid EU sanctions over debt: PM https://www.thelocal.it/20190611/italy-absolutely-determined-to-avoid-eu-sanctions-over-debt-pm
Reuters, 11/06/2019: EU moves closer to debt action as Italy angles for compromise https://www.reuters.com/article/idUSKCN1TC0EJ
Bloomberg, 11/06/2019: Italy’s Government Seeks to Avoid ‘Jittery’ EU Procedure https://www.bloomberg.com/news/articles/2019-06-11/salvini-and-di-maio-bury-the-hatchet-to-take-on-brussels-conte
Reuters, 13/06/2019: Italy to seek deal with EU over public finances: finance minister https://uk.reuters.com/article/idUKKCN1TE1I4
Reuters, 13/06/2019: EU steps up pressure over Italy debt, flags stability concerns https://uk.reuters.com/article/idUKKCN1TE126
EurActiv, 14/06/2019: Finance ministers press Italy to stick to EU fiscal rules https://www.euractiv.com/section/economic-governance/news/finance-ministers-press-italy-to-stick-to-eu-fiscal-rules/
Bloomberg, 14/06/2019: Italy Has Days to Avoid EU Action as Ministers Show Urgency https://www.bloomberg.com/news/articles/2019-06-14/clock-is-ticking-for-italy-to-avoid-debt-censure-le-maire-says
Reuters, 14/06/2019: EU heads towards full-blown fight with Italy over debt https://uk.reuters.com/article/idUKKCN1TF1W4

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