ROME (Reuters) - Italian Prime Minister Matteo Renzi said on Wednesday that European Union will appreciate Italy’s efforts to spur economic growth and create jobs with tax cuts while he again vowed to respect the area’s budget deficit limits.
“We will respect all the European limits,” Renzi said referring to the annual 3 percent of output deficit ceiling after announcing income- and business-tax cuts by the beginning of May.
Renzi said that Italy, which has forecast a deficit equalling 2.5 percent of output this year, would be able to spend more than originally planned because there is room for expenditure without exceeding the deficit ceiling.
The EU “will appreciate our reform efforts,” he said.
Reporting by Steve Scherer