Brussels, 12/07/2005 (Agence Europe) - Tuesday's Ecofin Council reached a political agreement noting the existence of excessive deficit in Italy and recommending that Rome bring its deficit down to below the 3% mark by 2007. It is on the basis of the recast rules of the Stability and Growth pact (SGP) that the draft Council decision (104§6) and recommendation (104§7) will be adopted informally by written procedure after entry into force of SGP reform. EU finance ministers therefore followed the Commission, considering that the Italian deficit above 3% in 2003 and 2004 was neither temporary nor exceptional. Atonic growth is not the result of an exceptional event independent of the will of the Italian authorities or the result of grave economic recession according to the GSP meaning of the term, the Council notes, stating that, with 106%-107% of GDP, the debt criteria no longer meets the SGP requirements. Despite being close to 3%, the deficit is not temporary, ministers say. According to SGP rules, they cannot take into account a series of relevant factors examined in the Commission's report under Article 104§3. It comes as no surprise that the draft recommendations aimed at putting an end to the excessive deficit situation therefore give the Italian authorities until 2007 at the latest to fall below the 3% mark. According to the rules of the amended SGP, Rome has until 12 January 2006 to take effective measures, in six months instead of four under the previous regime. Italy is expected to execute the 2005 budget rigorously and to take measures that represent at least 1.6% of GDP in 2006-2007 compared to the 2005 level, with half of this correction being in 2006. The debt ratio should also decline in a satisfactory manner, the draft Council recommendation states, calling on Italian authorities to improve the collection and the processing of public administration statistics. Commissioner Almunia considered that this first application of amended rules of procedure for excessive deficit was of the highest importance and that it stressed the support that Member States give to these new rules. “Even if it is difficult, the adjustment that the EU is asking us to make will allow us not to strangle the economy”, the Italian economic and finance minister, Domenico Siniscalco, said.