Italy's Tria: Clash with EU commission would damage both country and the EU

Eren Sengezer FXStreet

Italy's Economy Minister Tria said that there were several signs that the economic crisis could trigger a financial crisis and added that Europe would need an expansionary fiscal policy to counter the economic slowdown. Meanwhile, Deputy Prime Minister (PM) Matteo Salvini stated that they were aiming to have an inflow of around €40 billion from tax measures and reiterated that the government wants to be able to cut taxes.

Key quotes from Tria (via Reuters)

Country must reduce "enormous" public debt.
Reducing debt stock is necessary to shore up market confidence.
Country must avoid EU infringement procedure.
2019 deficit will be 2.1/2.2 pct of GDP.
Government in 2020 has problem of how to offset VAT hike and finance tax cuts.
There are several signs that economic crisis can trigger a financial crisis.
Europe would need expansionary fiscal policy to counter economic slowdown.
Government absolutely can reach compromise with EU.
Clash with EU commission would damage both country and the EU.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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