Deputy Premier and Labour and Industry Minister Luigi Di Maio said Tuesday that "we won't go back a millimetre" when asked about the rise in Italy's bond spread since the government announced it intends to let the deficit rise to 2.4%. "If necessary we'll explain the budget on the streets," the 5-Star Movement (M5S) leader told RTL 102.5 , adding the government was "united". He said that he did not think the European Commission's criticism of the budget plans was part of a "plot" to bring down the M5S-League government. He added, however, that they "must not give blows below the belt", saying European Commission President Jean-Claude Juncker and other Commissioners commented when Italy's bond spread had started to drop.
European Commission Vice President Valdis Dombrovskis said Tuesday that Italy could face EU sanctions if it goes through with plans to have a budget deficit of 2.4% next year.
"The Commission introduced a communication on the use of flexibility and Italy is the country that has most benefited," Dombrovskis said when asked to clarify Commission President Jean-Claude Juncker's comments on Rome's budget plans.
"Now the problem is that the discussions on the draft budget are going in a direction that substantially goes beyond this flexibility and Juncker said that we must apply the rules of the (Stability and Growth) Pact.
"And that is what the Commission is ready to do".
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