Italy Vows to Stick to Budget That Breaches EU Rules

The move is part of the coalition government’s aim to deliver on election promises

Giovanni Legorano

Oct. 22, 2018 7:23 a.m. ET

ROME—Italy’s government vowed to forge ahead with its spending plans Monday, despite warnings by the European Union that its proposed budget would breach the bloc’s fiscal rules, raising the prospect of a clash with Brussels.

In a reply to a European Commission letter sent last week, Rome said it wouldn’t back down from its plans to run a budget deficit of 2.4% of gross domestic product—triple the level agreed by the previous government.

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