EU rejects budget, new draft in 3 weeks

(ANSA) - Brussels, October - The European Commission has decided to reject the Italian budgetary planning document and to ask for a new one which must be sent to Brussels within three weeks, the EC said Tuesday.
    The rejection was widely expected because of what the EC sees as an unacceptably high deficit of 2.4% of GDP next year.
    The EC said last week this amounted to an "unprecedented" breach of the Stability and Growth Pact.
    The EC also says the budget's growth forecasts are unreasonably optimistic.
    The spread between Italian and German 10-year bond yields, a gauge of investor confidence, rose back to 310 points with a yield of 3.52% after the EC's thumbs down.