Italy needs significant deficit correction in 2019, 2020-Dombrovskis

Italy needs a big deficit correction for this year and next to avert a European disciplinary procedure over its deteriorating public finances, European Commission Vice President Valdis Dombrovskis told La Repubblica daily on Thursday. "What is needed is a substantial deficit correction in 2019 and 2020," Dombrovskis said in an interview published a day after the Commission opened the way to a possible disciplinary procedure that would trigger a clash with Rome's anti-austerity government.

Dombrovskis also said that a planned tax-cutting reform backed by the right-wing League - which governs in coalition with the anti-establishment 5-Star Movement - could be very expensive and help to further deteriorate Italy's public finances.