Salvini had mooted breaching EU’s 3% deficit limit
(ANSA) – Rome, May 17 – Deputy Premier and Labour and Industry Minister Luigi Di Maio said Friday that his 5-Star Movement (M5S) would not back a budget law that causes Italy’s big public debt to climb even higher. Earlier this week fellow Deputy Premier and Interior Minister Matteo Salvini, the leader of the League, said Italy should breach the EU’s 3% deficit limit if it is necessary to boost the economy and create jobs. The comment has been linked to a sharp rise in Italy’s bond spread.
“The issue is not the spread or the 3% limit,” Di Maio told State broadcaster RAI.
“The problem is that when you say you want to breach the 3% limit, that would increase the public debt.
“So I say clearly – the M5S will never vote for a budget law to increase the public debt”.
Di Maio also pledged that the government will avert a rise in value-added tax set to kick in at the start of 2020 unless alternative budget coverage can be found.