International Monetary Fund
Managing Director Christine Lagarde called on Italy to respect
the EU budget rules during a news conference at the agency's
annual meeting on Thursday.
"Our position concerning Italy is quite well known," Lagarde
said when asked about concern over the Italian government's
budget plans and the risk of contagion following recent market
turbulence.
"We certainly advocate continued fiscal consolidation, which
has to be growth-friendly in order to support the growth of that
country.
"And we certainly consider that being a member of the
European Union and the EU members should respect the rules that
they are committed to by virtue of their membership.
"That is our position".
The European Commission has sent Rome a letter expressing
concern that the plan to let the budget deficit rise to 2.4% of
GDP next year will lead Italy to breach the EU's rules.
Several national and international bodies have also
criticised the plan.
Economy Minister Giovanni Tria has said the criticism has
failed to take account of the positive effect the expansive
budget will have on growth, thus helping to bring down the
debt-to-GDP ratio too.
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