A deeper-than-expected recession is hurting Italy’s public finances but it can still keep the budget deficit below 3 percent of output without more fiscal tightening, Economy Minister Fabrizio Saccomanni said on Thursday.
Saccomanni, a former Bank of Italy official, said in parliament that the economic slump was weighing on tax revenues and in particular sales tax, as consumer spending slumps.
However, when asked if corrective measures would be needed to meet this year’s deficit target of 2.9 percent of gross domestic product, just a notch below the EU ceiling, he told Reuters: “I don’t think so.”
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