Commission forecasts 3% 2013 deficit for Italy
Govt passed mini-budget in October to stop crossing EU limit05 November, 10:43
The price of not meeting the 3% requirement is stiff - states that are under an excessive deficit procedure and have a debt-GDP ratio of over 60% are obliged to divert public money into trying to reduce that ratio.
In Italy's case, escaping the previous procedure, which was opened in 2009 and closed by the Commission in May, freed up around eight billion euros in the budget.
The Commission had previously forecast a 2.9% deficit-to-GDP ratio for Italy this year.
It has also revised up its deficit forecast for Italy for 2014, from 2.5% to 2.7%.
"After the great efforts made in 2012, the correction of (Italy's) budget has slowed," the Commission said in a report. photo: Commission President Jose Manuel Barroso