Italy to meet deficit cut deadline, says EC

The European Commission expects Italy to meet a 2007 deadline to cut its budget defict below the European Union's ceiling, an…

The European Commission expects Italy to meet a 2007 deadline to cut its budget defict below the European Union's ceiling, an EC spokeswoman said today.

"Our position is exactly the same - the deficit must be corrected by the end of 2007," Amelia Torres said.

Left-wing parties in Italian Prime Minster Romano Prodi's coalition are pressing him to spread out budget cuts planned for 2007 over two years, which would mean Italy would not bring its deficit below the EU limit of 3 per cent of gross domestic product until 2008 at earliest.

The parties argue Rome should negotiate a new schedule with Brussels. But Ms Torres said that with the Italian economy picking up, talking of more time to reduce the deficit was difficult to understand.