Brussels, 10/07/2013 (Agence Europe) - On Wednesday 10 July, the European Commission reminded Italy of its budget policy and economic recommendations after rating agency Standard and Poor's downgraded Italy on Tuesday from BBB+ to BBB with negative perspective.
The Commission's recommendations are for action on two fronts, namely budget consolidation and structural reforms to stimulate growth, explained a spokesman for Euro Commissioner Olli Rehn. The Commission will assess the planned changes in taxation (a property tax and VAT) once they have been introduced, he added. Italy's prime minister, Enrico Letta, addressed parliament himself to step up the payment of €40 billion in payment arrears from the Italian civil service to economic operators. On Tuesday, the Ecofin Council adopted recommendations for each of the member states, which they must use when drawing up their budgets for 2014 (see EUROPE 10872). (MB/transl.fl)