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A European Union official disclosed the European Commission will caution Italy on Wednesday it could face sanction for not lowering its large debt load as stated in their laws unless the country fulfills its pledge to reduce its debts.
An EU official said next week will signify that Italy is not complying to the existing debt regulation unless it will be able to outline its commitments. The official added the nation promised to implement steps in their letter to do 0.2% of measures aimed at cutting the structural deficit.
The warning comes following the Commission projected the country's public debt would reach an all-time peak of 133.3% of gross domestic product this year from 132.8% last year.
EU rules indicate Italy should instead slash its debt by around 3.6% of GDP yearly.
