On 2 July, the Commission took stock of the additional fiscal effort announced by the Italian authorities and concluded that it was material enough not to propose to the Council the opening of an Excessive Deficit Procedure (EDP) for Italy's lack of compliance with the debt criterion at this stage. A Commission report issued on 5 June had assessed under Article 126(3) of the Treaty the factors behind Italy's breach of the debt benchmark in 2018, and concluded that an EDP was warranted. This conclusion was supported by the Economic and Financial Committee in its opinion adopted on 11 June 2019. On 1 July, however, the Italian government adopted its mid-year budget for 2019 and a decree-law, which include a correction for 2019 that is expected to result in Italy's headline deficit reaching 2.04% of GDP in 2019 (compared to 2.5% in the Commission 2019 spring forecast). This was the target enshrined in the 2019 budget as adopted by the Italian Parliament. Taking into account the provisions adopted on 1 July, Italy is expected to be broadly compliant under the preventive arm of the Stability and Growth Pact (SGP) in 2019. Moreover, the additional fiscal effort delivered by the government for 2019 also partially compensates for the deterioration in the structural balance recorded in 2018, and the Italian government has committed to achieving a structural improvement through a new spending review and revision of tax expenditures.