An obvious Italy rebelling against the EU … Brussels is preparing to punish Rome

It is clear to global public circles and even ordinary citizens in the EU that Italy is trying to pursue an undesirable policy for the EU today.

The new history of Italy began when Giuseppe Conte came to power as a result of the elections.

In the summer, a ruling coalition was formed between the two movements of skeptics in the euro: “the movement of the five stars” and “the Northern League”.

Leaders of both parties, Luigi de Mayo and Matteo Salvini, became deputy prime ministers of the new government.

Although the two political forces do not fully agree with one another, they view the EU in the same way and believe that Italy will be better off.

For example, Mr. Salvini criticized in many interviews, Brussels, not only because of the refugee problem, but also for economic policy in general.

Salveni also pointed to the need to lift sanctions on Russia.

In short, a government has emerged in the heart of Europe and has become an obstacle in the eyes of the European Union.

By autumn, it became clear that the European Commission would literally hinder Italy everywhere.

Brussels is unhappy with the large deficit in the country’s national debt and budget.

Italy’s new draft budget has been in the hands of Europe, and now sanctions can be imposed on Rome for the disobedience of the European Commission.

Moreover, the talk of the need to curb the fanatical Italians, from the war against financial institutions in this country, is increasingly heard. What could be the consequences?

The stumbling block was Italy’s new draft budget.

This document failed miserably when trying to approve it in the European Commission.

All EU member states should harmonize the budget policy with Brussels, and there is no other way.

The Europeans, even when they came to power, did not hide that they would betray the harsh budget policies imposed by Brussels on Italy.

Therefore, the Northern League and the Five Stars, as promised the people, decided to end the financial crisis and not stifle the crisis economy in the country.

European Commissioners Valdis Dombrovskis and Pierre Moskovichoy told Italy’s Finance Minister Giovanni Treya that the proposed project had significant deviations from the EU’s budget targets.

The response was the statement by Deputy Prime Minister “de Mayo”, who said that Italy was generally prepared to lead a European protest against the budget-saving policy.

In Italy’s draft budget, the government recognized that the country’s economy in 2018 will not grow at the rate of 1.5%, the maximum will be 1.2%.

However, the government planned to inflow investments into the economy, reduce the burden on SMEs, as well as ease the tax burden of Italians self-employed.

The impact of these reforms is able to push the Italian economy to growth of 1.5% in 2019 and 1.6% in 2020.

The downside was the recognition that the budget deficit would reach 2.4% of GDP in 2019, but in 2020 it should be reduced to 2.1%, and in 2021, to 1.8%.

According to Italian government forecasts, the ratio of public debt to GDP should gradually decrease from 130.9% in 2018 to 126.7% in 2021.

The only problem is that the crisis of confidence of the European Union in the new Italian authorities has matured a long time ago.

The European Commission did not believe that European skeptics were willing to engage in action and to reduce indicators of debt and budget deficits.

“We are waiting for a new and amended draft budget plan by November 13, which is necessary, and the questions we have raised are still on the table”, said Pierre Moskovitchi, European Commissioner for Economic Affairs, who commented on the situation.

Prime Minister Giuseppe Conte, despite repeated warnings, said there was no alternative plan for the budget program.

He also pointed out that the Government did not intend to comply with the requirements of the European Union.

What are these requirements?

According to the rules of the European Union, there should be no budget deficit for any country that exceeds 3% of GDP, and the national debt should not exceed 60% of GDP.

Countries that exceed these limits should submit to the Committee these draft budgets, which will show that they are moving in the right direction.

Although the Italian budget deficit does not exceed the threshold of 3%, the EU is actively calling for government authorities to reduce the ratio of government debt to GDP.

This indicator in Italy exceeds twice allowed.

But at the same time, Italy does not simply have a place to attract resources.

In Italy (and in Europe as a whole) there is a demographic deterioration, where it is simply impossible to achieve stable economic growth.

How the EU wants to achieve Italy’s dependency

The EU’s goal now is to bring about the resignation of troubling Italian politicians in the euro area.

To do so, it is necessary to make economic conditions unbearable, which will lead to an explosion.

Rome has already been publicly threatened with sanctions on the banking system, that is, the use of the same influence that dealt a severe blow to Greece in 2015, which also did not want to extend the policy of providing the budget.

The former chairman of the Eurogroup group, Euroneil Deisselblum, in particular suggested that Italian bonds be devalued so that state banks could not meet their obligations.

European Central Bank President Mario Draghi said the sale of recent government bonds to state banks would result in a € 375 billion strike.

In Brussels, it was proposed that Conte, Di Mayo and Salfini should not be subjected to any violation of banks in Italy.

Italy, unlike China, has a trade surplus and the country does not rely on external cash supply to pay for its imports.

This lever can be used to leave banks in the business, which after the EU strike, will be insolvent.

Carsten Windorf, a member of the Advisory Board of German Federal Banks, responded by refusing the purchase of Italian government bonds and placing this responsibility on the Italians themselves.

“Instead of the European fund that buys Italian government bonds and is supported by European taxpayers, a national fund should be established”, Windroff wrote in a Frankfurter Allgemeine Zeitung publication.

The fund will be financed through “national solidarity bonds”, which Italian families will be asked to buy, for example, for 20% of their net wealth.

At this rate, “almost half of the public debt in Italy can be converted into bonds of solidarity”, he said.

Finally, said the European Commissioner for Economic Affairs, something quite contradictory.

If Italy does not face austerity, the European Union will impose financial sanctions of 0.2% of GDP, which amounted to 1.9 trillion dollars.

The Italian government claims that it will ensure that the ratio of debt to GDP is significantly reduced in the coming years”, said Portuguese Finance Minister Mario Santino in an interview with Bloomberg.

Following Italy’s response to the budget comments, the European Commission will have three weeks to decide.

The announcement date for the decision is November 21.

EU policy therefore threatens Italy with a new financial catastrophe.

European authorities have taken the new Italian government seriously, but not to improve the lives of ordinary Italians, but to bring about the resignation of the Conte government.

It does not please Brussels, not only for economic reasons but also from a political point of view.

The political track towards the PNA and the promotion of traditional values ​​in society, taken by the authorities in the country, is completely out of fashion in the rest of “civilized” Europe.

Finally, the European Union does not intend to lose Italy, whose authorities increasingly see that there is a need to arrange Italy’s exit from the European Union as Britain did.