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Govt denies reports it wants 10-bn-euros in local savings

Sources say municipal agencies could save more in budgets

26 February, 18:05
Govt denies reports it wants 10-bn-euros in local savings (Updates previous) (ANSA) - Rome, February 26 - The economy ministry denied reports Wednesday that as much as 10 billion euros in spending by a range of agencies that serve municipalities is on the table as the national government continues its spending review.

Sources said the savings could be found through such means as more careful and coordinated public tenders for goods and services used by the local agencies, the sources added.

However, the economy ministry quickly denied the reports, saying they "have no foundation".

The spending review, led by special commissioner Carlo Cottarelli, has reportedly identified the cost savings as it works towards a goal of cutting 32 billion euros over three years.

Cottarelli, the former International Monetary Fund's head of fiscal affairs, has been reviewing public spending for the Italian government with planned reductions annually between now and 2017.