Renzi told the Financial Times that Italy would
not breach the European Union's deficit limit of 3 percent of
GDP despite the fact that the economy fell back into recession
after contracting 0.2 percent in the second quarter of the year.
"I have absolutely no intention of breaking the 3 per cent
ceiling. We hope to have better (growth) figures in the second
half and as a result will be at 2.9 per cent (of GDP)," he told
Renzi and Economy Minister Pier Carlo Padoan have repeatedly
said that Italy would respect the EU's deficit limits without
the need for a supplementary budget but they have not given a
specific new forecast.
Italy's current deficit forecast for 2014 issued in April is 2.6
percent. But the target, as well as the official growth estimate
of 0.8 percent, is expected to be revised when the government
presents its new financial planning document in September.
(Reporting by James Mackenzie; Editing by Andrew Heavens)
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