Italy needs to respect EU budget rules and build up cash buffer, IMF official says

Nassos DrakosGlobal Markets

Italy needs to respect European Union budget rules with its 2019 budget and build a cash buffer to cushion the next economic downturn, the head of the International Monetary Fund’s European department Poul Thomsen said on Friday.

“We do think that a fiscal relaxation of that magnitude in Italy in the current circumstances is not correct,” he told reporters at the IMF’s annual meetings.

“It is important that Italy has a 2019 budget that is consistent with the European fiscal framework.”

Source: ekathimerini.com