Italy's deficit for 2013 to be 3%, says govt
Debt set to increase, recession to end by end of year06 September, 17:59
But the economy ministry stressed in a report, which was attached to the government's decree rolling back the IMU property tax, that the country was nevertheless on target to stay within the 3% deficit threshold allowed by the European Union. The European Commission closed a procedure for excessive deficit against Italy in May.
The decision to scrap IMU and replace it with a service tax that will generate less revenue for the government caused the revision in the deficit forecast. The report also said that Italy's huge public debt of over two trillion euros is set to rise further. The ministry added that Italy will post negative growth of more than the 1.3% of GDP forecast earlier this year in the government's economic blueprint, the DEF.
But the report confirmed that Italy should emerge from its longest recession in over two decades in the fourth quarter.