Reading between the lines shows the EU will probably reject Italy’s budget, according to Reuters:
Italian Economy Minister Pier Carlo Padoan has said he expects the European Commission to issue its evaluation of Italy’s 2015 budget on Oct. 29, a timetable which under EU rules would indicate the draft submitted by Rome had been rejected.
…
Under the reporting timetable laid down by the European Union, an assessment issued by the end of the month would almost certainly mean the budget plans had been rejected, an examination of the rules shows.
Under tightened-up European Union budget rules adopted last year, euro area member states have to submit their draft budget plans by Oct. 15 every year for approval by the European Commission. The Commission is meant to pass the plans by Nov.
It’s no big surprise but it’s terrible news for those hoping for a recovery in the eurozone next year. The move will also re-invigorate anti-eurozone sentiment in Italy.
