Italy should stop attacking the European Commission , the EU executive’s president said yesterday, as Rome and Brussels quarrel over an expansionary budget proposed by Italian Prime Minister Matteo Renzi.
Mr Renzi has criticised the Commission on several occasions, saying it applies rules too strictly.
“Italy is constantly attacking the Commission, wrongly so, and this does not produce the results they want,” Jean-Claude Juncker told a conference, adding that changes to fiscal rules had allowed Italy to spend €19 billion more this year.
“It should no longer be said that this Commission continues the austerity measures applied in the past,” Mr Juncker said.
“If one wants to say it, one can... but, in fact, I don’t care.”
Mr Renzi has proposed a budget for 2017 that would not cut Italy’s structural deficit as European Union rules require and that includes a headline budget deficit figure that is higher than previously agreed with the EU.
EU Commission, Italy at odds over extra spending on migrants, earthquakes
Replying to Mr Juncker in a public speech later yesterday, Mr Renzi said: “We are not making trouble, we are not intimidated by anyone.”
“We can talk about investments but on securing school buildings no one can block us: we will keep that money outside of the Stability Pact,” he added.
Italy’s 2017 budget earmarks more than €6 billion, or 0.4 per cent of its gross domestic product, in additional spending on migrants and to cover reconstruction costs after major earthquakes that have rocked the country this year.
But Mr Juncker said that migrants and earthquakes would have an additional cost equivalent only to 0.1 per cent of GDP.
A Commission spokeswoman did not confirm this figure in a statement later yesterday and added that the assessment of Italy’s draft budget continues. Separately, commissioner in charge of economic affairs, Pierre Moscovici, told a news conference the Commission would state its position when it publishes opinions on the draft budget plans of Italy and other EU states on November 16.
The EU executive will release its economic forecasts for member countries over the next two years tomorrow.
“Then you will have more elements on where we are and what are the gaps to bridge,” Mr Moscovici said in reply to a question on Italy’s budget.