o.e.c.d. says italy s economy will shrink by 0.2 percent this year at the same time the country s debt burden is twice as high as the e.u. stability and growth pact allows at 132 percent of annual economic output and this year the government wants to load more than 2 percent of fresh borrowing on top i think it s very probable that if the political uncertainty continues and if it can only continue to be in a face of stagnation still like the current one that feature as well as the other credit rating agency we revised down war their ratings deputy prime minister material selvi need doesn t hold budget discipline in much regard he wants to boost spending for things like pensions he s ignored warnings from the e.u. and d.c. b. as the euro zone s 3rd largest economy salvini is counting on italy being too big to be allowed to fail. and with antigovernment protests raging in hong kong china
our financial market correspondent all of us in frankfurt only so the three percent of g.d.p. deficit limits is part of the e.u. stability and growth pact what does it mean when a heavyweight micron s breaks that rule. well it means that it s setting a bad example for others and already the telly in government has noted as much that now france would be in that corner as well and of course it makes it all the more difficult for the e.u. commission or the other finance ministers and heads of governments and states to reel in italy and france and their big heavyweights and they both of course have their issues why they re doing this in france everybody knows you already said it it s the political situation in the country the village on the yellow vests basically hindering mccraw in performing the reforms that many in the markets
have a dialogue to have a declaration on values and if unfinished does not sign that declaration of values then they re out viktor orban is and has been also prime minister of hungary has been reelected should hungary be punished by the e.u. for its antidemocratic behavior yes that s why we have article seven that has been put into motion this is what the european union is all about you have to basically show that you put your money where my office you spoke about some reasons not arguments that reasons to understand populism it s only now has a populist anti or starting government that has recently approved a new budget with massive new borrowing they are breaking the rules of eurozone countries on day yes they are and that s why i ve always been very strong on a rules based system the stability and growth pact and i think when you are in bad economic times you should be expansionary when you re good economic times you
a rules based system the stability and growth pact and i think when you are in bad economic times you should be expansionary when you re good economic times you should probably do the structural reforms and i m quite sat me and a bit scared to watch what s going on in italy at the mo what would be your reaction on italy oh it would be one to follow the rules so i would be very much the guardian of the treaties on this particular case on the other hand you know that austerity for example in spades or in italy we have there a lot of unemployment queues unemployment so poverty on the one hand and principles on the other and what is more important they go hand in hand basically you need to have structural reforms in place you need to have an economy that works in order for you to be able to feed the well first of society it s not a give and take it s not only about growth or austerity you need both you said our values are under attack from both inside and outside. of the u.p.a.