ROME, March 19 Italian Prime Minister Matteo
Renzi declared on Wednesday that the European Union's budget
deficit limit of 3 percent of economic output was outdated but
that Rome would respect its commitments even as it focused
policy on growth and jobs.
"The 3 percent parameter is, objectively, an anachronistic
parameter," he told parliament to applause from deputies, adding
however that he would respect Italy's pledges to remain within
the 3 percent threshold.
Renzi was speaking a week after his government announced
billions of euros in tax cuts and growth measures which he said
would be partly funded by an increase in Italy's budget deficit
while respecting the 3 percent limit.
"The discussion today isn't about the 3 percent, and I
repeat today that there will be no breach on our part," he said.
"The subject today is about using the space that's available,
not breaching the limits from Europe."
(Reporting By James Mackenzie)