Brussels, 27/06/2005 (Agence Europe) - Italy's Minister for the Economy and Finance, Domenico Siniscalco, and Economic and Monetary Affairs Commissioner Joaquin Almunia agreed during a telephone conversation on the trajectory for adjustment of the Italian deficit, La Corriere della Sera reported on Monday. According to the daily, it is highly likely that Rome will have until 2007 to bring its budgetary deficit under the 3% mark stipulated in the Stability and Growth Pact (SGP). Early this month, the Commission had drafted a report whereby, with 3.1% in 2003 and 2004, the Italian deficit was neither temporary nor exceptional (EUROPPE 8963). On Wednesday, it will note the existence of excessive deficit (Article 104§6) and adopt a recommendation informing Italian authorities of the time allowed for returning below the 3% mark (Article 104§7). The rules set out in the Pact provide, except in “special circumstances”, for the deficit to be corrected the year after it is noted, in this case 2006. Growth in Italy fell during the first quarter of the year and Italian competitiveness is a source of concern. These elements could play a part in favour of extending the time allowed until 2007.