European Commission will not act against Italy over its debt, for now

The European Commission on Wednesday dropped its threat of disciplinary action against Italy after Rome took actions to curb its growing debt. The European Commission is willing to examine all information from Italy over its public finances before making a final decision, European Economic Affairs Commissioner Pierre Moscovici told a news conference.

Rome has announced new six-month data showing the projected 2019 deficit will be some 7 billion euros less than targeted in April thanks to lower-than-expected spending and higher revenues. It has also drawn up a decree to rein in the budget deficit in 2020, according to draft legislation seen by Reuters, which will likely allay the Commission's concerns.