Euro chiefs dismayed by Italy's budget as Juncker evokes Greece

(Oct 2): Italian Finance Minister Giovanni Tria’s effort to promote his government’s new fiscal strategy ended in failure on Monday, with the head of the European Commission warning of a Greek-style crisis and the nation’s bonds closing the day at their weakest level in more than four years.

“Recent announcements by the Italian government have raised concerns about its budgetary course,” Mario Centeno, the Portuguese finance minister, said in Luxembourg after a meeting with his euro-area counterparts, which he heads. Dutch Finance Minister Wopke Hoekstra went further, saying “I’m somewhat less optimistic after having talked to my colleagues than beforehand.”

Tria is attempting to reconcile expensive campaign promises made by his coalition government with euro-area rules that require member states to adhere to certain deficit targets. And while Italy will present its budget to the commission in mid-October for approval, officials in Brussels have already indicated that it may not stand up to the bloc’s rules.

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