Italy lowers deficit in revised budget to avoid EU sanctions

MILAN (AP) — Italian Premier Giuseppe Conte has presented a revised budget to the European Union that proposes a lower deficit than an earlier version in a bid to avoid costly sanctions.

Conte told reporters in Brussels after meeting with European Commission President Jean-Claude Juncker the new draft lowers the budget deficit to 2.04 percent of GDP from 2.4 percent of GDP.

Conte said both parties represented in Italy’s coalition government back the new proposal, which retains both the basic income for job-seekers promised by the 5-Star Movement and a rollback on an unpopular pension reform pledged by the League.

The EU commission rejected Italy’s previous budget, saying the populist government’s spending plans would break promises to lower public debt.

Conte said of his Wednesday trip to Brussels: “‘We hope to bring home a positive solution.”