The Italian government slightly raised the country's budget deficit target ...
ROME - The Italian government slightly raised the country’s budget deficit target for 2020 on Monday, looking to head off a programmed hike in value-added taxes while avoiding renewed tensions with the European Union.
The latest figures point to growth of 0.1% this year, down from a previous goal of 0.2%, with output seen at a meager 0.6% in 2020 compared to a previously forecast 0.8%, the Treasury’s Economic and Financial Document said. In July, the European Commission urged Italy to reduce the structural deficit by 0.6 points next year.
Economists warned such a hike could have snuffed out Italy’s timid growth and the new government, which took office last month, said avoiding the VAT rise was a priority.
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