Brussels, 20/09/2013 (Agence Europe) - At 1.7%, economic growth in Italy is below expectations and the deficit currently stands at 3.1% of GDP due to an interruption in the interest rate reduction trend and political instability, but Italy's prime minister, Enrico Letta, said on 20 September at a Council of Ministers meeting, as he unveiled the country's updated growth and budget forecasts, that the commitment to respect the 3% deficit mark by the end of the year was within reach and will not require huge intervention. He pointed to areas that pointed to an upturn in growth next year and positive signs by the end of this year. He repeated the promise to meet the stability criteria deadlines and unveil on 15 October a stability law, which he hoped would be used to assess the government's progress.
Simon O'Connor, a spokesman for Commissioner Olli Rehn, said: “We welcome the firm commitment of Prime Minister Letta to ensure that this year's budgetary targets are met. An unambiguous commitment to sound public finances is key to rebuilding market confidence in Italy and to laying the foundations for a sustainable recovery.” He added that the Commission will publish its own autumn forecasts at the beginning of November. (FG/transl.fl)