Italy's Salvini Calls for €20 Billion Extra Deficit in 2027 Budget Amid EU Debate
Salvini's Budget Proposal and EU Fiscal Dynamics
Salvini Advocates for Increased Deficit
ROME, Aug 25 (Reuters) - Italy should increase its budget deficit by at least €20 billion ($23.3 billion) in next year's budget, Deputy Prime Minister Matteo Salvini said on Tuesday, insisting that the move would not require EU approval.
Government's Fiscal Stance and EU Oversight
Salvini's remarks come two weeks after Prime Minister Giorgia Meloni defended her government's prudent fiscal stance and said Italy had a good chance of exiting the EU's disciplinary procedure (EDP) for an excessive budget deficit.
Salvini's Statement on National Decision-Making
"I think we need to put (extra deficit spending) on the table. I intend to propose it in the coming days. We don't need the approval of Brussels, we need a national decision," Salvini told the Ilsussidiario.net website.
"We need at least €20 billion," he added.
Special Levies and Taxation Proposals
Levy on Large Banks
Salvini, the leader of the far-right League party, confirmed he would press for a special levy on large banks, dismissing concern that this could spook financial markets. He said he agreed with opposition calls to extend a tax on so-called extra profits to energy firms.
Call for Contributions from Profitable Sectors
"Full speed ahead, then, without hesitation. Those who have more, in a difficult moment, should give more."
"Banks, insurance companies, energy companies, and oil companies are making money. I'm pleased, let's be clear. I'm not in favour of proletarian expropriation, but at a time like this, we need to ask for a contribution from those who can," he added.
Political and Economic Context
Calls for more spending, ahead of a general election due next year, versus the need to respect EU budget rules, are likely to dominate discussions on Italy's 2027 budget, which the government is expected to present in October.
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Reporting Credits
(Reporting by Alvise Armellini; Editing by Crispian Balmer)
