17 July 2001, 13:48  EU's Solbes says Italy's fiscal measures positive, but may not be enough

MILAN (AFX) - The government's decision to introduce corrective measures to reduce the public deficit by 0.5 pct of GDP are positive but may not be sufficient, said EU monetary affairs commissioner Pedro Solbes in an interview with the daily Il Sole 24 Ore. The government will be judged "on facts," he said, adding however that Economics Minister Giulio Tremonti's commitment to respect a public deficit target of 0.8 pct of GDP this year generated "very positive reactions". He said government incentives to prompt companies and workers to quit the black market could have an "important impact" on public accounts. Solbes said the commission will take into consideration the economic slowdown to appraise public accounts, but only for elements linked to the economic cycle. Tremonti's intention to reform pensions and healthcare, modernise the public administration, simplify the fiscal system and reduce taxes and public spending are "sweet music" for the commission, Solbes said.

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