Italy's government agrees to target 2019 budget deficit GDP at 2.4 percent

Italy's government has agreed to target next year's budget deficit at 2.4 percent of gross domestic product, party chiefs said on Thursday, ending a tussle between the ruling parties and the economy minister.

Italy's government has agreed to target next year's budget deficit at 2.4 percent of the gross domestic product, party chiefs said on Thursday, ending a tussle between the ruling parties and the economy minister.

The coalition of the 5-Star Movement and the League had been pushing for a deficit around 2.4 percent of GDP to fund costly policy pledges, while Economy Minister Giovanni Tria had wanted a figure below 2 percent.

"There is an accord within the whole government for 2.4 percent, we are satisfied, this is a budget for a change," 5-Star leader Luigi Di Maio and League chief Matteo Salvini said in a joint statement after meetings with Tria.

The full cabinet began meeting at around 1900 GMT to sign off on the government's economic and financial targets for the next three years.