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EU Warns Italy on Budget But Walks a Fine Line

The European Union handed Italy a stinging letter Thursday warning that the nation's significantly higher deficit targets represented a deviation “unprecedented in the history” of EU budget rules — but still offered reassurances that the bloc was “not an adversary of Italy.” The dual message underlines the EU’s balancing act as it tries to prod Italy’s new populist government back into compliance with EU financial standards without enflaming the anti-Europe rhetoric that is coursing...

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