Italy will need to take steps beyond planned pension reforms to meet budget deficit targets for 2004, European Monetary Affairs Commissioner Mr Pedro Solbes said in an interview published this morning.
"...I have the impression that the pension reforms will not be enough to meet the structural objectives for 2004," Mr Solbes was quoted as saying in
Corriere della Sera.
"But I want to be clear: a move on pensions will not be seen as an alibi or justification to allow the deficit to rise above the three percent ceiling."
Euro zone countries are committed to keeping their budget deficits to under three percent of gross domestic product, according to the rules of the EU's Stability Pact. But the EU is forecasting that Italy will top that limit in 2004.
Italian Economy Minister Mr Giulio Tremonti is expected to present the country's annually-updated four-year economic plan, including fresh targets for growth and budget deficits, to parliament later this month.
Italian newspapers reported today that the government would target a deficit of 1.9 per cent of GDP next year - substantially less than the 3.1 per cent the EU is forecasting - meaning the government will have to generate in the region of 13 billion euros in savings or increased revenue to close the gap.