Italy promises EU new measures to reduce deficit

Italian Finance Minister Pier Carlo Padoan presides an Ecofin economic and financial affairs meeting at the EU headquarters at the Kirchberg Conference Centre in Luxembourg, on October 14, 2014Italy said Monday it was pledging “additional measures” to reduce its structural budget deficit by 0.3 percent of GDP in 2015, after it was warned by the European Commission it risked breaching EU fiscal rules. Economy Minister Pier Carlo Padoan sent a letter to Commission vice president Jyrki Katainen after Italy postponed balancing its budget in structural terms from 2015 to 2017. The treasury said it would speed up efforts to reduce Italy’s mammoth deficit and debt by pooling an additional 4.5 billion euros ($5.7 billion) which had originally been earmarked to reduce the country ‘s tax burden. Italy had initially said it would reduce the structural deficit by just 0.1 percent of gross domestic product next year.

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