Page 8 - AT

A8 WORLD NEWS
Friday 9 November 2018
Italy's budget row with EU escalates ahead of deadline

By COLLEEN BARRY "There are no grounds for
PAN PYLAS questioning the founda-
MILAN (AP) — The Italian tion and sustainability of
government insisted Thurs- our forecasts," said Conte,
day it is sticking with its plan adding that Italy expects
to rapidly increase public the debt load to decrease
spending as a dispute with to 126.7 percent of GDP
the European Union over by 2021. The Commission
the budget intensified fol- doesn't appear to be in a
lowing a gloomy set of mood to haggle.
forecasts. "There cannot be a sort of
In response to the EU's ex- negotiation on this," said
ecutive Commission's pre- Pierre Moscovici, the com-
diction that Italy will be the missioner responsible for
slowest-growing economy economic matters.
in the 19-country eurozone Countries that use the euro
through 2020, Italian Pre- have to seek approval
mier Giuseppe Conte said from the Commission for
his government had no in- their budgets as part of a
tention of revising its plans coordination exercise de-
by next week, as Brussels signed to prevent a repeat
had requested. European Commissioner for Economic and Financial Affairs Pierre Moscovici presents the Autumn of the debt crisis that af-
"The Commission growth 2018 economic forecast at EU headquarters in Brussels, Thursday, Nov. 8, 2018. flicted the region over the
forecast for next year un- Associated Press past decade. The Commis-
derestimates the positive sion could sanctions Italy if
impact of our economic the budget plans would emerged from its eight- cent, again 0.3 percent- it does not revise its plans
maneuver and our struc- prevent the country's huge year bailout era in the sum- age point-lower than the by Tuesday.
tural reforms," he said. "We debt burden from falling, mer. projection from Rome. The Italian government ar-
are going ahead with our as promised. The Commission said it ex- As a result, the Commis- gues that the economy
estimates on the public fi- And that could raise re- pects the Italian economy, sion expects higher budget needs a stimulus so it can
nances, with growth that newed questions about the eurozone's third-largest, deficits for Italy, notably for turn around after stag-
will increase and debt and the future of the euro. It- to grow by only 1.2 percent next year. Rather than the nating for years. Boost-
deficit that will decrease." aly's public debt burden in 2019, below the 1.5 per- 2.4 percent of GDP predict- ing growth, it argues, will
The worry in Brussels and in stands at around 130 per- cent projected by the gov- ed by Italy, the Commission help control debt levels
financial markets, where in- cent of the annual GDP, ernment. And in 2020, the expects 2.9 percent, a level and eventually solidify the
terest rates on Italian bonds second in the eurozone Commission forecasts Ital- that would not bring down country's place within the
have spiked sharply, is that behind Greece, which only ian growth of only 1.3 per- Italy's overall debt stock. single currency bloc.q

Gorbachev calls for

preventing new arms race

Associated Press that he intends to pull out
MOSCOW (AP) — Former of the Intermediate-Range
Soviet leader Mikhail Gor- Nuclear Forces (INF) Treaty
bachev said Thursday that that Gorbachev and Rea-
urgent efforts must be tak- gan signed in 1987 over al-
en to prevent a new arms leged Russian violations.
race. Gorbachev, who took the
Gorbachev, 87, told re- helm in 1985 and stepped
porters that Moscow and down on Christmas Day
Washington should focus 1991 as the Soviet Union
on mending their rift and broke up, has won broad
improving their relation- international acclaim for
ship, one he described as his role in helping end the
the most important in the Cold War.
world. But he has been frequently
Gorbachev said "I hope criticized at home where
that the arms race could many held him responsible
be stopped and we could for the Soviet demise and
continue the nuclear disar- the misery and political tur-
mament" that he and U.S. moil that followed.
President Ronald Reagan In a separate statement is-
initiated. sued Thursday, Gorbachev
He was speaking after at- voiced concern about "at-
tending the Moscow pre- tempts to take the world
mier of a film made by Wer- back into the past," warn-
ner Herzog based on their ing that a new twist of the
conversations. arms race poses the great-
U.S. President Donald Trump est danger.q
announced last month