The Italian government has capitulated to Brussels on its budget:
Prime Minister Giuseppe Conte forged a deal with populist leaders to submit a revised budget proposal to the European Commission, in a bid to avert fines against Italy.
Conte’s euroskeptic deputies Matteo Salvini and Luigi Di Maio, who hold most of the political power in the administration, set aside their opposition to concessions at talks running late into Sunday night and agreed on a new package to send to Brussels, government officials said.
Because shrinking your economy is the best way to get out of debt, if you are a mad dog or a German economist.
The Italian budget is already in primary surplus (excluding debt payments), but more cuts are demanded because of an unwillingness to recognize that Brussels’, and Berlin’s, world view is creating poverty and right wing populism.