Italy given 2007 deadline to cut budget deficit
29/06/2005 - 11:10:11The European Union gave Italy a two-year grace period today to cut its budget deficit in line with euro-zone rules.
The EU head office said Italy was set to violate the budget rules underpinning the common currency by running deficits above 3% of its domestic product in 2003, 2004 and 2005.
But due to weakness in the euro-zone’s third-largest economy, it would give Italy two years instead of just one to bring the deficit back in line.
