Economy Minister Pier Carlo
Padoan on Tuesday said that Italy was not in violation of
European Commission budget 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 said in an appearance 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 is also introducing structural reforms "to strengthen
sustainability" of economic growth.
Padoan's comments came as an apparent indirect response to
an earlier declaration by his German counterpart Wolfgang
Schaeuble on whether the EC should apply flexibility in
assessing the annual budgets of member States.
"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," of
financial markets in the sustainability of eurozone budgets, the
German economy minister added.
Meanwhile, Padoan said Tuesday that EC officials
"appreciate" the reform efforts Italy is making to improve its
economy and encourage growth.
Talks with EC officials examining Italy's 2015 budget show
they also understand "the exceptional circumstances" created by
years of economic weakness, Padoan said.
Italy has not seen any real growth since 2008 while
unemployment and business failures have increased and inflation
fallen at times below zero.
Still, Padoan predicted that times will get better and
economic growth will help Italy to pay down its massive debt of
more than two trillion euros - more than 130% of GDP - beginning
next year.
"We respect the rules, we are one of the EU countries that
doesn't go over the (budget) limits," Padoan told Sky news.
"From 2016, the debt will be on a downward path,
guaranteeing stability".
The EC last year deferred a decision on whether to approve
Italy's 2015 budget until March, expressing concerns about the
lack of debt-reduction measures.
But Padoan said Rome had already given the EC details of
his "sufficient" efforts to bring the public debt down, adding
that he was "confident no further (budget) adjustments" will be
needed.
Efforts will be helped by the European Central Bank's
quantitative easing programme, which is the right springboard
for a new EU-wide push for growth and jobs, Padoan said.
He also laid to rest any rumours he might be interested in
running to replace Giorgio Napolitano as Italian president.
"I have so much to do as minister," Padoan said.
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