Saccomanni says Italy won’t change 2014 budget
(ANSA) – Brussels, November 22 – Italy will not change its 2014 budget significantly and new measures it is taking to pay down debt will be good for the country and the economy, Economy Minister Fabrizio Saccomanni said Friday.
As he headed into meetings of the European Commission council, Saccomanni said the success of budget measures, including spending review and debt reduction plans, prove that despite earlier EC criticisms, Italy’s budget is sound.
“The (budget) aw is not changed,” he said.
Italy remains determined to pay down debt to free up cash for use in meeting the government’s broader commitment to improving the country’s financial picture, Saccomanni added.
The government’s plan announced Thursday to sell assets worth as much as 12 billion euros fits in with the broader program of reducing debt to allow more resources to be used for economic growth measures, including tax cuts, Saccomanni said during meetings in Brussels.
Less debt means lower debt-serving expenses for the national Treasury, he added.
But the asset sale alone is not enough, and the government remains committed to significant structural improvements for the longer term benefit of the country, he added.
“We need to reduce the stock of debt and every (measure) is useful because once you reduce debt, you can have virtuous policies,” to strengthen the country’s fiscal and economic structure, said Saccomanni.
Italy’s accumulated debt stands at a whopping 130% of gross domestic product, or about two trillion euros.
Saccomanni brushed off criticisms last week by the EC which said the Italian government’s 2014 budget bill could contravene the European Union’s Stability and Growth Pact (SGP) by not doing enough to tackle its huge debt.
“What makes my job difficult is the debt, not the statements of (the EC),” said Saccomanni.