EU’s rejection of Italy’s budget plays into the hands of Rome’s populist goverment

On Tuesday, the European Union did something it has never done before: It rejected the proposed budget of one of its members.

The European Commission said Italy’s proposal, which would swell the country’s deficit to 2.4 percent of GDP to fund tax cuts and stronger welfare programs, posed "unacceptable risks" to Italy and the euro zone. "We see no alternatives," European Commission Vice President Valdis Dombrovskis said Tuesday. "The ball is now in the court of the Italian government."

The Italian government now has three weeks to make a choice: It can draw up a more austere budget, or stick to […]

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