EU sends Italian budget back to sender

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Brussels has reprimanded Italy’s populist government for breaking EU deficit rules in its first budget, putting the European Commission on course for an unprecedented rejection of a eurozone member’s spending plan.

In a letter sent to the Italian government, the European Commission said that Italy’s draft 2019 budget is a “significant deviation” from EU budget rules. The letter is the first step in the so-called semester procedure, allowing the commission to give recommendations on national budgets. The commission asks Rome to engage in a “constructive dialogue” and to answer before noon on Monday 22 October. CD / FT / EuObserver

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