The European Commission has warned Italy for breaching EU budget rules due to its excessive debt, requesting clarifications from the Italian government. This has reignited tensions between Rome and Brussels, with potential sanctions looming. Italy's Deputy Prime Minister Matteo Salvini dismissed the warning, advocating for a 'fiscal shock' to stimulate growth, including significant tax cuts. Italy's public debt stands at 132.2% of GDP, far exceeding EU limits, and the country remains the eurozone's worst economic performer. The situation has led to increased market concerns, reflected in the widening spread between Italian and German debt.

The European Union has recommended sanctions against Italy over its 2019 budget, which the EU claims risks leading the country into instability. The budget, which includes increased spending and a basic income for the unemployed, was rejected by the EU for reversing previous cost-cutting measures. Italy's coalition government, comprising the League and the Five Star Movement, remains defiant, hoping to leverage anti-EU sentiment in upcoming elections. The EU's excessive deficit procedure could lead to fines if Italy does not amend its budget. Market reactions and internal political dynamics are critical as the situation unfolds.

The European Commission has rejected Italy's draft budget, which proposed increased spending against EU rules, and has given a three-week deadline for a revised plan. Italy's public debt is at €2.3 trillion, over 131 percent of GDP, and the proposed budget has a deficit of 2.4 percent of GDP for 2019. The Commission could initiate an 'excessive deficit procedure' that may lead to fines up to 0.2 percent of Italy's GDP. Credit ratings agencies are anticipated to give their opinions soon, which could affect Italy's borrowing rates and potential for default. Moody's has already downgraded Italy's credit rating and revised ratings for 12 Italian financial institutions.

The dominance of English in the EU's Brussels bubble persists despite the French language's historical significance and the Brexit vote. French-speaking veterans recall a time when French was essential in European decision-making. The shift towards English accelerated in 2004 with the EU's expansion to include former Warsaw pact countries. French President Emmanuel Macron is set to promote French on International Francophonie Day, but the reality remains that English is the most widely spoken foreign language in Europe. While some believe French usage is improving, the consensus is that French will not regain its former prominence in the EU.

The EU is striving to finalize a trade deal with Canada, known as CETA, amid resistance from regional Belgian leaders, particularly from Wallonia. European Commission chief Jean-Claude Juncker and European Council President Donald Tusk emphasize the importance of the deal, warning of broader implications for future trade agreements. Wallonia's head, Paul Magnette, remains unconvinced, citing concerns over investor protection. The deal's failure could signal difficulties in negotiating trade deals with Europe, impacting future agreements like the EU-US TTIP. The EU is also addressing broader issues of global free trade and protection against unfair practices, particularly concerning China's market status.