The European Union wants to avoid a “crisis” with Italy over the country’s spending plans. However, Brussels also needs to ensure the euro zone economy remains stable, the European Commissioner for economic affairs told CNBC on Thursday.
“We want to avoid a crisis with Rome… but at the same time we need, absolutely, to make sure that the Italian debt decreases and the stability of the euro zone is ensured,” Pierre Moscovici, European Commissioner, told CNBC’s Nancy Hungerford in Bali.
Italy’s public debt represents 130 percent of gross domestic product and totals 2.3 trillion euros ($2.6 trillion). There are strong concerns that the intentions from the new government in Rome to raise spending, and subsequently the debt pile, could brought up another debt crisis in the euro zone.
“This is why I would say this is a delicate matter,” Moscovici added.
