Italy says no risk to budget after Commission warning

ROME Fri Nov 15, 2013 6:12am EST

ROME Nov 15 (Reuters) - Italy said on Friday it had already considered risks to its budget plans highlighted by the European Commission and would take steps to counter the danger of slippage on deficit and debt targets.

The Commission warned on Friday of a risk that Italy's draft 2014 budget plans would not be compliant with European Union rules that oblige governments to contain budget deficits and cut public debt.

In a statement, the Italian Treasury said the Commission "does not take account of important provisions announced by the government though not formally included in the budget law and which are already in the process of being implemented."

It pointed to a spending review intended to cut public expenditure, tax reforms, a privatisation programme, a revaluation of central bank capital which is expected to help public finances and measures to repatriate capital held abroad to avoid tax.

It said it shared the Commission's view on the need to consolidate public finances and reduce debt and said the measures taken and planned would "have a positive effect on public accounts in line with the requirements of the stability and growth pact without the need for further intervention."

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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