Budget respects EU rules - Padoan

(ANSA) - Rome, October 28 - Italy's Economy Minister Pier Carlo Padoan on Friday defended the government's draft 2017 budget law, saying it had been "drawn up in compliance with European rules".
    "Furthermore, we increased the deficit after asking and obtaining authorisation from parliament in order to meet expenses caused by exceptional circumstances, particularly post-earthquake reconstruction and support for spending to tackle the large and growing flow of migrants arriving in our country because they want to enter Europe," Padoan said in a video posted to the ministry's official Twitter account. The government on Thursday responded to the European Commission's request for clarification on its draft 2017 budget plan concerning "(deficit spending for) earthquake reconstruction and the migrant emergency".
    The budget raises the deficit-to-GDP ratio to 2.3% to accommodate estimated emergency spending respectively of 2.8 billion euros and 3.8 billion euros on these two items.
    The European Commission said Friday that it had received Italy's response and those from four other countries. "Analysis continues for these member States and for the others, as does dialogue with the capitals," the spokesperson said. "We will not make any further comment".
    Padoan also denied that tax reduction is a one-off event or campaign slogan in view of the upcoming constitutional referendum on December 4.
    "This budget law continues in the same direction taken by the government at the start of its activity: support for investment, tax reduction, support for families and stabilisation of public dept, as well as reduction of the spending deficit," the minister said.