Italy's plans in opposite direction -IMF

Not right time to loosen policy says European dept chief

(see related stories on budget) (ANSA) - Bali, October 12 - The International Monetary Fund on Friday continued its criticism of the Italian government's budget plans, which would see the nation's deficit to rise to 2.4% of GDP next year. The IMF's European Department Director Poul Thomsen told a news conference that the plans "go in the opposite direction to that suggested by the IMF". "It is not the right time to loosen (budget) policies," Thomsen said, adding that Italy was in a group of nations with "limited margins" for manoeuvre.