Economy / Foreign relations / Politics

Renzi’s budget law under scrutiny

Mr Renzi’s budget law is under examination by the President’s Office, the General Accounting Office and the European Commission.

Brussels is likely to send to Rome a formal letter complaining that the budget law doesn’t reduce the State deficit enough. Rome will reply that a relatively lax budget is needed in order to revamp the economy after the damages produced by years of crisis and austerity. The last word will come from the EU Council, which won’t be able to ignore that France openly defied the European budget rules.

In purely political terms, there’s no need for Mr Renzi to be nervous. Even if the Commission forces him to amend his budget, it will be a popularity boost anyway, since he will be perceived as a champion of economic stimulus fighting against an obtuse European bureaucracy.



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