EU: Breaking 3 pct limit doesn't bring growth, says Padoan

(AGI) Brussels, Dec 9 - Italy's Finance Minister Pier CarloPadoan criticised the idea that breaching the EU limit of a 3percent deficit to GDP ratio can lead to more economic growth."It is deeply incorrect", he said after the ECOFIN meeting inBrussels on Tuesday. "Growth is fundamental for Italy,especially in light of our debt, and the way is out is economicgrowth, for which there are no shortcuts and no magic wandwaving. A combination of structural reforms and stimulatingprivate investments is what is needed to continue on the pathtowards a reorganised public finance

(AGI) Brussels, Dec 9 - Italy's Finance Minister Pier CarloPadoan criticised the idea that breaching the EU limit of a 3percent deficit to GDP ratio can lead to more economic growth."It is deeply incorrect", he said after the ECOFIN meeting inBrussels on Tuesday. "Growth is fundamental for Italy,especially in light of our debt, and the way is out is economicgrowth, for which there are no shortcuts and no magic wandwaving. A combination of structural reforms and stimulatingprivate investments is what is needed to continue on the pathtowards a reorganised public finance favourable to growth", hesaid. In 2015, Padoan noted, the deficit/GDP ratio will reach2.6 percent. Breaking the 3 percent threshold, he added, "wouldproduce an immediate negative reaction on the markets, of whichwe would instantly feel the effects; it would be a burden thatwe cannot handle". Above all, he concluded, "rules must befollowed". (AGI) .