|Author (Corporate)||European Commission|
|Series Details||COM (2019) 532|
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.
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.
On 2 July, the Italian authorities informed the European Union of a number of additional measures aimed at addressing the concerns put forward by the European Commission.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, European Semester, National Budgets|
|Keywords||Public Debt, Stability and Growth Pact [SGP]
|Countries / Regions||Italy|
|International Organisations||European Union [EU]|