Italy’s League would raise deficit target to 2.8% of GDP to avoid VAT hike: La Stampa By Reuters

MILAN (Reuters) – Italy’s ruling League party would raise its public deficit target to 2.8% of gross domestic product to avoid hiking value-added tax, the party’s main economics spokesman said in an interview with La Stampa newspaper on Monday.

League chief Matteo Salvini pulled the plug last week on its coalition government with the anti-establishment 5-Star Movement, starting a potential countdown to elections which the country may need to tackle alongside preparing its budget in autumn.

Party economics chief Claudio Borghi, who has loudly criticized the euro, also told La Stampa there was no intention of starting a fight with the European Union over the currency.