Italy and EU Can’t Agree on Country’s Structural Deficit

Different Calculations

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The European Commission and the government in Rome take a different view of what Italy’s public finances will look like over the next couple of years — Brussels sees the structural deficit widening to 3.6% of GDP in 2020, while the Italian Treasury forecasts it will narrow to 1.4%. The differences are explained by the estimates of the output gap, which the EU claims was -0.1% in 2018 and Italy says was -1.5%, according to
Bloomberg Economics

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