Italy's leader said Thursday that the government will speed up investments to help economic growth, but that the main points of its big-spending budget plan would not be changed despite the EU's warning it is in serious breach of the rules.
Giuseppe Conte told lawmakers that if eurozone countries impose sanctions against Italy over its budget, as recommended by the EU executive Commission, he would ask that they be extended over a long period of time "to allow the economic maneuver to produce its effects on growth, and therefore, reduce public debt."
Conte and his top ministers remain committed to trying to persuade European partners of the need to increase spending sharply, despite repeating warnings that the plan would hurt the economy by saddling it with more debt.
The EU Commission has this month raised the stakes, urging Italy's fellow countries in the euro to consider sanctions against the country for so blatantly breaking the union's fiscal rules.
Italy's new populist government says the spending plans are necessary to boost growth after years of austerity measures.
