Tuesday evening Deputy Prime Minister Salvini said he does not want to change what is essential after the Cabinet meeting. The deadline expires when you have to answer the European Commission at midnight. Three weeks ago, the committee referred to the Italian plan as garbage and asked the government for homework again.
The European Commission (EC) is now ready. There are two weeks to officially join Italy, but there is likely to be a reply on Wednesday.
First, finance ministers will come to Brussels on Monday to hold additional Eurogroup meetings. Officially, it's not about Italy, it's about the eurozone reforms that have to make a decision in December. The theme of Italy will surely pass.
The Commission may propose that Italy be terminated at the European Criminal Court and can impose a fine of up to 0.2% of GDP, with an estimated EUR 3.5 billion. Such a thing never happened before. A decision may be made at the Eurogroup meeting scheduled for December 3.
Italy wants to spend several hundred billion euros more next year than the rules allow. For example, the Netherlands strongly opposes this issue because it could endanger the stability of the entire euro zone.
Due to the budget deficit, Rome will increase to 2.4% and next year it will be 0.8% according to the agreement with the Italian government. According to the European Commission, Italy's economic growth is so optimistic at 1.5%.
The Italian government, which includes the extreme leftist five-party movement and the right-wing Lega, wants to lower the retirement age and provide basic income for the unemployed.
Greece's national debt is highest at 131% of the euro area's GDP. Brussels standard is 60%. Since the Italian economy is much larger than Greece, the impact of the crisis on the whole will be even greater.
In response to this plan, the interest rate Italy has to pay for German government bonds has risen sharply in recent weeks.