Italy Targets 2.2% Deficit-GDP in Draft 2020 Budget Framework

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Italy is targeting a 2.2% deficit-to-GDP ratio for next year in the draft of a budget framework due to be approved by cabinet Monday evening, according to a senior lawmaker who asked not to be named discussing confidential talks.

The draft was the focus of talks led by Prime Minister Giuseppe Conte that lasted into the small hours of Monday morning. It targets GDP growth of 0.6% GDP growth in 2020, the official said.

A spokesman for the finance ministry declined to comment.

Conte told reporters earlier Monday that the government has found the 23 billion euros ($25.1 billion) needed to avert an automatic sales tax hike from next year. Conte’s coalition partners have clashed over a proposal to tweak the sales tax, but raising the levy even on just some goods would be politically controversial.

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