>> A day after Italy's new government announced a 2019 budget deficit 3 times as big as the previous administration's, the EU offered a warning to Rome, watch out.>> We have no interest in a crisis between the Commission and Italy. Italy is an important Eurozone country, but we don't have any interest either in Italy not respecting the rules and not reducing its debt, which remains explosive.
>> The block had wanted Italy's deficit to stay closer to 1.6% of GDP for 2019. Instead, one of 2.4% over the next 3 years was announced to pay for tax cuts, more welfare and infrastructure spending, a major win for the anti-establishment leaders within the government.
t not for the country's Economy Minister, who had wanted to obey the EU.
Italy has the heaviest debt burden among EU economies, although others aren't far behind. And Italian government bonds were quick to react. Yields hit a three-week high on Friday. That just makes Italy's massive debt pile, 132% of GDP, even more expensive to service.