Liga and M5S can not agree on the Budget – The Economic Journal

Liga and M5S can not agree on the Budget - The Economic Journal

The two parties that make up the Italian government, the League and the 5-Star Movement (M5S), can not agree on the changes to be made to the 2019 State Budget – which has been disapproved by the European Commission and the Eurozone.

The League remains unavailable to accept a series of measures that the M5S wants to introduce, as a way of making the document 'acceptable' by the Commission. Matteo Salvini, leader of the League, does not accept some of the provisions that the president of the movement Luigi di Maio wants to implement.

The government and the majority are trying to get out of the deadlock on the Budget and present a first package of 54 amendments to the Budget Committee. The amendments are expected to be closed in the first few days of next week, but for now there is no agreement, especially on raising lower wages.

In a jointly signed note, Salvini and Di Maio, they write that Prime Minister "Giuseppe Conte is working on the potential of the reform agenda that will lead the country to grow, avoiding the risk of a third recession and opening a better prospect to Italy ".

The proposed measures re-launch "employment and productivity, reaching out to those left behind in the crisis years, breathing consumption and seeking investment as a springboard for long-term growth."

The opposition, even the right-wing opposition, like Berlusconi's Forza Italia, begins to lose patience with the government, accusing the executive at first of being ready to give in to the European Union and after failing to reach a wake up. "So much noise for nothing," commented one of its leaders, on the yield to Europe – that the two formations that joined to form government had said that would never happen.

Both parties are trying to agree on a set of measures to keep the deficit for the next few years well below the 3% threshold – the only way to persuade the European Union not to start excessive deficit procedures, which would reduce financing from Brussels.

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