Italy needs to respect EU budget rules and build up cash buffer, IMF official says

Italy needs to respect European Union budget rules with its 2019 budget and build a cash buffer to cushion the next economic downturn, the head of the International Monetary Fund’s European department Poul Thomsen said on Friday.

“We do think that a fiscal relaxation of that magnitude in Italy in the current circumstances is not correct,” he told reporters at the IMF’s annual meetings.

“It is important that Italy has a 2019 budget that is consistent with the European fiscal framework.”

[Reuters]