Italy determined to avoid EU disciplinary action: PM Conte

Italy is determined to keep a dialogue open with the European Union (EU) over its high debt in order to avoid a possible disciplinary procedure, Prime Minister Giuseppe Conte said here on Wednesday.

At the same time, Conte said that his government remained convinced that its planned economic policies were pointing in the right direction, considering the country's needs.

"With regard to the disciplinary procedure, we are all determined to avoid it, yet we are also firmly convinced about our economic policies," Conte said during a hearing in the Lower House of Parliament.

As usual, Conte addressed the lawmakers ahead of an EU summit on June 20-21 to inform them about the position he will hold among his counterparts.

"We are determined to keep the dialogue with the EU open, and I am clearly expressing such a view to my (European) counterparts and at EU meetings," the prime minister said.

Earlier this month, the European Commission said that a disciplinary action against Italy would be "justified" because the country was not seen as sticking to a promised path of public debt reduction. Italy's debt amounted to 132.2 percent of its gross domestic product (GDP) in 2018 (against 131.4 percent in 2017), and was the second highest in the EU after that of Greece.

EU rules require all member states to follow budgetary guidelines, including keeping their debt below 60 percent of GDP or -- in case of higher debt -- to stick to a constant reduction plan in agreement with EU authorities.

On June 5, while issuing its usual European Semester 2019 Spring Package reviewing the EU member states' economic and fiscal policies, the Commission suggested an excessive deficit procedure against Italy because of its "non-compliance with the EU's debt rule in 2018."

The EU executive body added that, in light of the current policies and reforms planned by the Italian government, it does not expect the country to respect the fiscal rules in 2019-2020 either.

For Italy, an infringement procedure would entail a closer oversight of its fiscal and economic policies by authorities in Brussels, and a high financial fine.

"To the EU institutions and leaders I will say that ... Italy intends to respect the European rules," Conte told lawmakers.

"Yet, this should not prevent our country -- as one of the founding members (of the EU) and the third largest economy of the continent -- from promoting an effective consideration on how such rules could be upgraded in order for the Union to be better ready to face global and systemic financial crises, and to ensure a real balance between stability and growth," he explained.