Brussels, 17/04/2014 (Agence Europe) - The European Commission has taken note of Italy's announcement that it is postponing from 2015 to 2016 its return to a balanced structural budget.
The Commission will be studying the new trajectory laid down in the Italian stability and reform programmes by Monday 2 June, it explains in a letter to Italian economy and finance minister Pier Carlo Padoan, published in Italian newspapers on Wednesday 16 April.
The tax measures recently announced by Matteo Renzi's government (reduction in income tax on low incomes and a reduction in the professional tax) will have a negative impact in the short-term on public finances (see EUROPE 11058), but Italy is still planning to keep its nominal budget deficit at 2.6% of GDP, which will give it some room for manoeuvre because it is a eurozone nation that does not have excess deficit proceedings running against it. (MB)