Balance budget for growth, says Padoan

(ANSA) Rome, July 31 - Italian Economy Minister Pier Carlo Padoan said Thursday that a major "effort" is needed to sustain EU growth and cautioned that energy supplies could be vulnerable if sanctions against Russia last a long time.
    "The situation of the economy is less favourable" Padoan said after meeting French counterpart Michel Sapin in Rome as part of Italy's revolving presidency of the EU.
    "An effort is needed to sustain growth in a context of consolidating the finances".
    Padoan and Sapin said in a joint statement that "everything depends on the duration" of sanctions imposed on Russia over Ukraine.
    "This is a delicate subject and we have spoken of it in the G7 meeting," Sapin said as Padoan nodded in agreement.
    "If the Ukrainian situation will last more than a year, we'll need to open the file again".
    Italy is heavily dependent on imports of Russian natural gas for its energy needs.
    Sapin added that "we share 100% the priorities announced by Padoan - we all need more growth".
    "We have emerged from tumultuous times with a financial and banking crisis, but there is still not stable and enduring growth, which we need to rebuild the economic texture, to repair the social texture and to reduce mass unemployment and youth unemployment".
    Sapin underlined that economic growth entails "pursuing a a balanced budget. We must not neglect reducing deficits and debt".