Ireland says Italy deficit, debt hikes "pragmatic"

ROME, Sept 21 (Reuters) - Italy's "pragmatic" decision to hike its deficit and debt targets raises questions over how much austerity its economy can take, Irish Prime Minister Enda Kenny said on Friday after meeting Italian Prime Minister Mario Monti.

Italy on Thursday forecast that the recession this year would be much deeper than it previously expected and loosened its targets for fiscal consolidation.

"Prime Minister Monti has been very pragmatic in what he set out here, clearly he has raised the question of the extent of austerity which can be applied in Italy," Kenny told reporters when asked whether the new targets showed austerity was proving counter productive.