EU reject Italian budget draft

statsman

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For the first time ever, the EU has used its powers under the Stability and Growth Pact to reject a draft budget submitted by a member state by saying no to Italy's plans to run a 2.4% deficit, three times the EU mandated target of 0.8%.

Italian bond yields are up on the back of the move, and the government there is refusing to back down, saying there is no plan B. The country has the second-highest debt to economy size ration in the EU after Greece, and can ill afford to have to pay more to service it.

Interesting times ahead.

EU rejects Italian draft budget, setting up standoff with defiant Italy | Reuters

Subscribe to read | Financial Times
 
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farnaby

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One of the few Alex Jones videos I've seen involved him broadcasting from his "bunker" on the eve of Matteo Renzi's reform referendum - claiming that rejection would be the event that would trigger the collapse of the globalist order :laugh:. He must be doubling his canned food stockpile as we speak because this rejection has a lot more potential to destabilise things.

To be fair to the Italians, they're coming in under the stability and growth pact deficit limit of 3%. Shame about the legacy debt pile...
 

brughahaha

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For the first time ever, the EU has used its powers under the Stability and Growth Pact to reject a draft budget submitted by a member state by saying no to Italy's plans to run a 2.4% deficit, three times the EU mandated target of 0.8%.

Italian bond yields are up on the back of the move, and the government there is refusing to back down, saying there is no plan B. The country has the second-highest debt to economy size ration in the EU after Greece, and can ill afford to have to pay more to service it.

Interesting times ahead.

EU rejects Italian draft budget, setting up standoff with defiant Italy | Reuters

Subscribe to read | Financial Times
And if increased Bond yields following threats from the EU bring down the Italian economy .......... It will further inflame anti EU sentiment across the EU just in time for next years "parliamentary" elections.

And Italy is not Greece , it s too big for the ECB to handle a collapse

The Euro is the rock on which the EU federal project will flounder. A political rather than an economic currency is of no use to anyone and will always eventually be found out
 

statsman

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One of the few Alex Jones videos I've seen involved him broadcasting from his "bunker" on the eve of Matteo Renzi's reform referendum - claiming that rejection would be the event that would trigger the collapse of the globalist order :laugh:. He must be doubling his canned food stockpile as we speak because this rejection has a lot more potential to destabilise things.

To be fair to the Italians, they're coming in under the stability and growth pact deficit limit of 3%. Shame about the legacy debt pile...
Yes, it's the legacy debt that's killing them. I wonder how they'll manage to blame someone else for it.
 

Clanrickard

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Two things I can see happening. Italy calls the EC's bluff and the Commission caves as Italy is too big to fail. It will beg the question as to equal treatment under EU law considering how we were treated.Or there will be a slow coup as per the last time when the President caused a minister to be removed. Neither scenario is inviting.
 

Spanner Island

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Plenty of Eurosceptics will be getting hard ons about this...

No doubt a few on here will be salivating as they type too... :roll:
 

Catalpast

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Two things I can see happening. Italy calls the EC's bluff and the Commission caves as Italy is too big to fail. It will beg the question as to equal treatment under EU law considering how we were treated.Or there will be a slow coup as per the last time when the President caused a minister to be removed. Neither scenario is inviting.
There will be Regime Change

- all done behind closed doors of course!
 

statsman

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Wot? Them Greeks invented the ghay.

I reckon they'll get all adventurous and invade Ethiopia. Or Cork. Which is, as well all kno, great!
I'd be all for giving them Cork, invasion or no invasion.
 

statsman

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Two things I can see happening. Italy calls the EC's bluff and the Commission caves as Italy is too big to fail. It will beg the question as to equal treatment under EU law considering how we were treated.Or there will be a slow coup as per the last time when the President caused a minister to be removed. Neither scenario is inviting.
There's a third option; the government could cave.
 

farnaby

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It will beg the question as to equal treatment under EU law considering how we were treated.
And how France and Germany were treated (favourably) previously. There's a quote doing the rounds about Juncker being questioned on how France got away with limit-breaking deficits for years - "because it's France", he is said to have replied.

I'm broadly pro-EU and Euro but there's a fundamental questions about how to deal with the next crisis (it's a-coming) justly that hasn't been answered.
 

Voluntary

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I'm broadly pro-EU and Euro but there's a fundamental questions about how to deal with the next crisis (it's a-coming) justly that hasn't been answered.
1. You accept it as inevitable
2. You don't let the valuations increase mad in the good times, so crashes are easier to manage and you can pass through
3. Save in good times to go on shopping spree when the SALE/recession kicks in
 

Sync

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There's a third option; the government could cave.
Or collapse. Like every other Italian govt ever.

A lot of the Euro problems can be tracked back to the appalling "Sher we'll just trust everyone" approach the EU took when applicants put their numbers forward. Italy and Greece deliberately and strategically misled the EU to fudge their numbers to get in. And these problems are the result of that.
 

Cruimh

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Or collapse. Like every other Italian govt ever.

A lot of the Euro problems can be tracked back to the appalling "Sher we'll just trust everyone" approach the EU took when applicants put their numbers forward. Italy and Greece deliberately and strategically misled the EU to fudge their numbers to get in. And these problems are the result of that.
Wasn't just applicants who cheated, as seen in the Ireland/Apple debacle.
 

hollandia

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Or collapse. Like every other Italian govt ever.

A lot of the Euro problems can be tracked back to the appalling "Sher we'll just trust everyone" approach the EU took when applicants put their numbers forward. Italy and Greece deliberately and strategically misled the EU to fudge their numbers to get in. And these problems are the result of that.
If that is the case, then the treatment of Greece is entirely justified, if harsh. The Italians should receive the same treatment as Greece, and Ireland. Italy also has massive problems with endemic corruption (see Silio Berlusconi, for further details), so a bit of oversight from the EU or if necessary, the Troika, will sort things in the medium term. It will be tough of yer ordinary Italian, (as it was here), but necessary. Let's hope however, the lessons of Ireland's bailout are learned, and that the right people are brought to book early and publicly.
 

statsman

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Or collapse. Like every other Italian govt ever.

A lot of the Euro problems can be tracked back to the appalling "Sher we'll just trust everyone" approach the EU took when applicants put their numbers forward. Italy and Greece deliberately and strategically misled the EU to fudge their numbers to get in. And these problems are the result of that.
Italy is a bankrupt entity, and really ought to be let go to the wall at this point.
 
D

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Italy is a bankrupt entity, and really ought to be let go to the wall at this point.
It should be brought to the wall, and shown the wall, but only with adult supervision. No way should it be let go on it's own.
 


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