Economy Minister Pier Carlo
Padoan said Friday that it would be a major setback if the
European Commission opens an infringement procedure against
Italy over its public finances.
"An infringement procedure would be a big problem in terms of
the reputation that Italy has constructed," Padoan said.
"It would be a U-turn on what has been constructed up to
now".
Padoan also stressed, however, that the government's planned
spending on the areas of central Italy affected by a recent
series of earthquakes will be separate from the measures it will
present in its response to the European Commission's request for
further reductions in the budget deficit.
"The Commission expects a response on February 1 and that
response will arrive," Padoan said.
The minister added new "concrete measures" for the quake
zones will be approved next week "independently of how we will
respond to the Commission's request to make an adjustment".
The European Commission expected Italy to make "clear
commitments" and "detailed measures" in the letter it will send
next month replying to a 0.2% extra budget deficit cut request,
Euro Commissioner Valdis Dombrovskis said Friday, replying to a
question on what Brussels wants from Italy to avert the opening
of an infringement procedure for an excessive deficit-to-GDP
ratio.
The centrist AP group, a junior partner in Premier Paolo
Gentiloni's coalition government, said Friday that it would not
vote for a corrective mini budget to meet European Commission
demands for a further reduction in Italy's deficit.
"We in the AP are not willing (to accept) any additional
budgets requested by the European Union, we will never vote for
it," said AP's Lower House whip Maurizio Lupi.
"The priority objective set by the Italian (2017) budget law
is to finance growth and that should be Europe's main aim too"
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