Italy to respond to European Union in time-PM office - English

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Conte said he would review the draft budget line by line when he returns to Rome.

Conte said Italy was "available for constructive dialogue" with the European Union in the coming weeks.

Luigi Di Maio told a late-night talk show that the draft presented to the Italian president contained a proposal to extend a tax amnesty on money held overseas and brought back to Italy. That has never happened before.

I will continue to make the case that in Europe this principle applies: "responsibility and solidarity, liability and control - those are two sides of the same coin", she added to laud applause. "This letter asks some questions, now it's up to the Italian government to respond".

Giancarlo Giorgetti said in a newspaper interview that a fire sale of Italian government bonds over the last five months had put huge pressure on bank reserves and could trigger a second crisis in two years.

Tria said the European Union and Italy have different views about the country's policies and he hoped "with dialogue" these views would "come closer together".

"Most of the government's spending increases are structural in nature, implying that they will be hard to reverse", Moody's wrote. Spreads of other peripheral economies widened too, with the difference between benchmark notes in Spain and Germany touching the highest since May.

The move is likely to be opposed by Britain and eastern European countries who fear that existing sanctions could be by-passed, one diplomat said.

'We have no understanding whatsoever for Italy's draft budget plan'.

Italian Minister of Foreign Affairs and International Cooperation Enzo Moavero Milanesi, right, shakes hands with EU Commissioner for Economic and Monetary Affairs Pierre Moscovici on the occasion of their meeting at the Foreign Ministry Farnesina Palace in Rome, Friday, Oct. 19, 2018. He said that the 2.4 percent deficit in and of itself was not the key issue. Italy projects this will widen by 0.8 percent, more than the 0.6 percent improvement Brussels wants.

Di Maio, also deputy prime minister, said on Wednesday the text of the amnesty had been "manipulated" after his party had signed off on the measure in cabinet, raising doubts about the stability of the coalition government. Italian sovereign debt yields hit fresh multi-year highs by the close of the week, as investors are growing increasingly cautious over lending to the anti-establishment Italian government.

While Italy's deficit is well within the 3 per cent limit laid out in treaties, the Commission has demanded smaller gaps for Italy to bring down its debt load. The government targets growth of 1.5 percent in 2019, followed by 1.6 percent and 1.4 percent in the following years.

Arriving at the EU summit in Brussels, Conte acknowledged that budget plans to boost welfare spending, cut the retirement age and hike the deficit were unlikely to please the European Commission, which polices euro zone states' fiscal policies.

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