Italy's 2006 public deficit is worsening - Padoa-Schioppa
AFX News Limited 06.14.2006, 07:21 AM

ROME (AFX) - Italy's 2006 public deficit is worsening, said finance minister Tommaso Padoa-Schioppa during a parliamentary hearing.

Earlier this month, the government said that a due diligence on the public accounts indicates a 2006 deficit of 4.1 pct of GDP, with the risk that this could rise to 4.6 pct.

Padoa-Schioppa is expected to present corrective budgetary measures at a meeting of EU finance ministers scheduled July 10.

Italy has pledged to limit the public deficit to 3.8 pct of GDP.

During the hearing, Padoa-Schioppa said that the country is enjoying a slight economic upturn, but 'growth is not yet sustainable.'

He added that government action has to aim at improving public accounts but above all to spur economic growth by boosting competitiveness.

The country, whose economy was flat last year, has to aim at a stable annual growth of 2 pct, he added.

philip.webster@afxnews.com