Italy hints 'yellow vest' demos weighed on EU debt row

The "yellow vest" protests revealed discontent among the French over a squeeze to their spending power

Rome (AFP) - Italy’s prime minister suggested Thursday the “yellow vest” protests marked by violent clashes in France could be partly to thank for Rome resolving its budget dispute with the European Union.

Brussels had threatened to fine Italy for spending plans that EU officials said broke Rome’s deficit and debt-reduction commitments.

The sides finally called a truce on Wednesday after Italy backed down from two of its key spending policies.

The French protest movement “could have weighed” on the matter, “even if that is difficult to quantify,” Italy’s Prime Minister Giuseppe Conte was quoted as saying by the newspaper Corriere della Sera.

In France, protesters have staged mass demonstrations against government fuel-tax rises and high living costs, leading to clashes with police.

France’s government responded to the protests by last week announcing a new wave of spending for 2019.

That sparked suggestions of double standards since France’s plans, like Italy’s, risk breaking EU finance limits.

Conte said he “explicitly mentioned the revolt of the yellow jackets” in his talks on the deficit dispute with EU Economic Affairs Commissioner Pierre Moscovici, a former French finance minister.

Italy is governed by an alliance of populist and far-right groups who chose Conte, a lawyer and political newcomer, as their figurehead.