Parliament approves postponing balanced budget till 2018

(ANSA) - Rome, October 18 - The Senate on Thursday approved the government's decision to postpone balancing the national budget until 2018, as outlined in an update statement to the executive's economic blueprint, the economic and financial document (DEF). The resolution, which needed an absolute majority of 161 Senators, passed with 170 votes in favour. Earlier on Thursday the Lower House also approved the resolution by Premier Matteo Renzi's executive with 342 votes in favour, well above the absolute majority of 316 MPs.
    The DEF statement also stated that Italy's deficit-to-GDP ratio should be 2.4%, rather than the previously planned 2.2%, in view of the possibility that the EU will grant extra budget flexibility (some 0.2%) for States faced with extra spending due to the refugee crisis.
    Parliament also voted to commit the government to extend certain breaks in social-security contributions for firms who hire young people on permanent contracts and to find ways to make the pension system more flexible to enable people close to retirement age to take early retirement if they wish to.