Last month, Italy submitted the draft budget for 2019, which had an unprecedented conflict with the European Union. Italy's draft budget plans to increase next year's structural deficit by 0.8% as a share of gross domestic product (GDP), which EU rules require to be reduced by 0.6%.
The European Commission rejected Italy's draft budget, and the meeting of finance ministers of euro zone member states showed that Rome was isolated on this issue. Finance ministers of other euro-zone members fear that higher borrowing and spending plans will threaten the euro and deeper euro-zone integration.
"We agree with the assessment of the European Commission," the finance ministers of the euro zone member states said in a statement after discussing the Italian budget.
"We bear in mind the importance of sound public finances... that is a prerequisite for sustained and sustainable economic growth and for the smooth functioning of the Economic and Monetary Union (EMU)," they said.
"We look forward to an open and constructive dialogue between Italy and the Executive Committee, and to close cooperation between Italy and the Executive Committee in preparing for the revision of the budget plan to conform to the SGP (EU Budget Rules)."
Italy needs to send the revised budget plan to the European Union by November 13th. But leaders of the country's coalition government have repeatedly reiterated their rejection of the possibility of budgetary changes and the need to increase borrowing in order to start growth.
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