On 30 September 2019, Italy's Council of Ministers reportedly approved a budget deficit target for 2020 equal to 2.2 percent of GDP, including a reduction in government spending meant to avoid triggering an increase in VAT rates. Under Italian law, there is a safeguard clause that provides for automatic VAT rate increases unless budget targets are met. Currently, the reduced 10% VAT rate is scheduled to increase to 13% in 2020 if budget targets are not met and the standard 22% VAT rate is sch…