By Giovanni Legorano 

ROME -- Prime Minister Giuseppe Conte said Italy will target a lower budget deficit for next year in a bid to avoid being disciplined by the European Union.

Mr. Conte said Italy will now target a deficit of 2.04% of gross domestic product, down from 2.4%, the level which it had previously earmarked for next year to finance expansionary and costly measures the two antiestablishment parties in power promised their voters.

Italy's new plans are unlikely to satisfy the European Commission, the bloc's executive arm, which may ask Italy to trim its planned spending more.

However, it will allow talks between Italy and the EU to proceed and postpone any decision about disciplinary proceedings, which can be imposed on countries breaching European fiscal rules, to a later stage.

"I trust the outcome [of the negotiation] will be positive," said Mr. Conte, after meeting top officials at the commission, including President Jean-Claude Juncker.

Write to Giovanni Legorano at giovanni.legorano@wsj.com

(END) Dow Jones Newswires

December 12, 2018 15:03 ET (20:03 GMT)