'Italy's 2019 budget deficit target should be set around 2.4 percent'

Italy's ruling parties, the right-wing League and the anti-establishment 5-Star Movement, are insisting the 2019 budget deficit target should be set at around 2.4 percent of national output, a government source said on Thursday.

The two parties are locked in a dispute with Economy Minister Giovanni Tria, who wants to hold next year's deficit below 2 percent of the gross domestic product, and negotiations throughout the day have failed to break the deadlock.

"We're not budging from 2.4 percent," said the source, who asked not to be named.

The cabinet was due to meet at 1800 GMT to agree on new economic and public finance targets for the next three years, but at 1810 the meeting had not yet begun.