Italy 'not breaking' EU rules - Padoan

(ANSA) - Brussels, January 27 - Economy Minister Pier Carlo Padoan on Tuesday denied that Italy was in violation of EU budgetary rules and said the country was making every effort to reduce its massive debt.
    "I know there is the perception that Italy is breaking the rules but look carefully at the figures, it's not true," said Padoan during an audition before the European parliament.
    "We stick to the rules better than others despite the high debt, which we are making every effort to keep on a path of reduction," he added. Italy "currently finds itself in the preventive 'embrace' of the Stability Pact" regulating budgetary policy among EU member states, the minister said, adding that Italy was "also introducing structural reforms to strengthen sustainability".
    His comments came as an apparent indirect response to an earlier declaration on flexibility by his German counterpart Wolfgang Schaeuble.
    "Flexibility is not negative per se but it must not lead to a situation where the agreed rules are not respected," Schaeuble said.
    "Then it would be wrong and would destroy confidence," the German economy minister added.