A government summit to iron out
differences on how big the deficit-to-GDP ratio should be in the
update to the DEF economic blueprint, essential for the 2019
budget, is heading for a deal despite recent tensions, sources
said Thursday.
Two hours into the meeting, League and 5-Star Movement
sources said "the atmosphere is serene and a deal is in the
offing".
Premier Giuseppe Conte was joined by the two deputy premiers,
Labour and Industry Minister Luigi Di Maio and Interior Minister
Matteo Salvini, leaders of the government partners the 5-Star
Movement and the League, and by Economy Minister Giovanni Tria.
Also present was European Affairs Minister Paolo Savona, a
respected and controversial Euroskeptic economist.
Tria has been under pressure to allow the deficit to rise
from the initial DEF figure of 1.6% to 2.4-2.5% to fund a basic
income, pension overhaul and flat tax.
League Lower House whip Riccardo Molinari said earlier
Thursday that Economy Minister Tria could be ditched amid
reported tension over the 2019 budget law.
"If Tria is no longer part of the (government's) project,
we'll find another economy minister," Molinari told RAI
television.
Tria is reportedly resisting intense pressure from the League
and its alliance partner, the 5-Star Movement (M5S), to draft a
budget that would see Italy's deficit rise significantly, up to
2.4% of GDP, in order to finance the pledges in the contract of
government.
These include a 'citizenship wage' basic income, an overhaul
of the pension system that would bring down the retirement age
and a flat tax.
Labour and Industry Minister and Deputy Premier Luigi Di Maio
said Thursday that his M5S does not intend to call on Tria to
quit.
"No resignation request is planned," Di Maio told reporters
in Brussels.
He also denied reports that the presentation of the
government's economic blueprint, the DEF, will be delayed saying
a cabinet meeting will be held for this later on Thursday.
"It will be a courageous budget of the people, which won't
get hung up over one number or another," he added.
Interior Minister and Deputy Premier Salvini said "absolutely
yes" on Thursday when asked it is worth breaking the 2% mark for
Italy's deficit-to-GDP ratio.
"The right to work, to happiness of millions of Italian
people is worth a few little numbers," League leader Salvini
said during a visit to Tunis.
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