The European Commission has rejected Italy ’s draft budget due to concerns the proposed budget may have on the debt - laden nation . It is the first time the EU has tried to force a member state to change its budget , and fines could be imposed if the request is ignored . Italy ’s debt , sitting at 10 % of national debt , is the second - highest in Europe , behind Greece . Italy , which pledged to increase spending to “ end poverty ” and deliver on election promises , claimed the budget deficit does not go above 2.4 % of GDP . The country ’s populist leaders have pledged to pursue their proposed budget in spite of the EU ’s objections .
The European Commission has rejected Italy’s draft budget due to concerns the proposed spending may have on the debt-laden nation. It is the first time the EU has tried to force a member state to change its budget, and fines could be imposed if the request is ignored. Italy’s debt, sitting at 131% of national output, is the second-highest in Europe, behind Greece. Italy, which wants to increase spending to “end poverty” and deliver on election promises, claimed the budget deficit would not go above 2.4% of GDP. The country’s populist leaders have pledged to pursue their proposed budget in spite of the EU’s objections.