According to a prepared speech for delivery today, Italian Economy Minister Giovanni Tria said “for a zero growth economy like Italy” a 2.1% deficit represented “a more than prudent fiscal policy”.
He added that the country is targeting to keep deficit low in the coming years. And the government will continue to lower its debt through reducing spending. Thus, “on this basis, we feel that Italy is substantially compliant with European fiscal rules.” Tria is also confidence of reaching an agreement over its budget with the EU.
EU leaders are expected to approve the so-called Excessive Deficit Procedure on July 8-9 summit, which would lead to penalty to Italy over its budget. It’s reported that European Commission would give Italy until January to make necessary budget corrections.