The trick of the Italian budget law

Italy escaped the EU excessive deficit procedure for now because the Italian government has curbed the three main electoral promises by underestimating the costs of the planned measures.

Should the “government of change” enforce its most important election promises, the deficit ratio would reach 2.38% in 2019, 2.89% in 2020 and 2.53% in 2021. In case of the assumed economic recession the deficit ratio would rise to 5.28% in 2019, before falling to 3.09% and 2.77% in the following two years.

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