Italy budget deal struck with Europe after months-long row

2018-12-20 03:58:13 Clifford

After months embroiled in a high-profile diplomatic row, Italy has agreed a deal on its budget with the European Commission.

The Commission had demanded changes to Italy's budget plans because of the country's high debt.

Italy initially stood its ground, leading EU officials to threaten disciplinary action and potentially expensive fines.

But European officials said Wednesday's agreement avoided such action.

Under the deal, Italy has agreed to lower its planned budget deficit from 2.4% to 2.04% - not so much of a reduction as European officials had hoped for.

The value of Italy's concessions is understood to be a little more than €10bn (£9bn).

Italian Prime Minister Giuseppe Conte said the compromise was a win for both sides.

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Italy budget,EU

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