According to Ansa news agency
Time is running out in Italy on having to unveil the deficit plans for next year. On Thursday, they will be presenting an economic report to provide a rough glimpse of what the budget and fiscal plans will look like for 2019 but we're not even close to an agreement from all parties right now.
The coalition government still wants to push for a deficit of around 2.5% (and possibly more) in order to introduce their fiscal measures, which includes tax cuts, pension reforms, and citizens' income among other things. Meanwhile, finance minister Giovanni Tria is adamant to keep the deficit between 1.5% to 1.8% of GDP.
It's setting up for a major clash and if a higher deficit is granted or if Tria gets removed from his post, the ultimate loser will be Italian assets. The only way this turns out well is if Tria gets his way and the EU endorses the draft proposal in October.
However, even then it's not a slam dunk just yet. The proposal has to be returned to Italy's parliament to be approved and with lawmakers appearing to side more with the coalition government, things are going to get more and more messy in the months ahead.
