June 6, 2019 / 6:34 AM / 3 months ago

Italy needs significant deficit correction in 2019, 2020: Dombrovskis

European Commission Vice-President Valdis Dombrovskis holds a news conference at the EU Commission headquarters in Brussels, Belgium, June 5, 2019. REUTERS/Francois Lenoir

MILAN (Reuters) - Italy needs a big deficit correction for this year and next to avert a European disciplinary procedure over its deteriorating public finances, European Commission Vice President Valdis Dombrovskis told La Repubblica daily on Thursday.

“What is needed is a substantial deficit correction in 2019 and 2020,” Dombrovskis said in an interview published a day after the Commission opened the way to a possible disciplinary procedure that would trigger a clash with Rome’s anti-austerity government.

Dombrovskis also said that a planned tax-cutting reform backed by the right-wing League - which governs in coalition with the anti-establishment 5-Star Movement - could be very expensive and help to further deteriorate Italy’s public finances.

Reporting by Silvia Aloisi

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