Italy's balanced budget target to be delayed until 2014

FXstreet.com (Barcelona) - According to Reuters, Italy is considering postponing the balanced budget goal until 2014, abandoning the initial intention of attaining it this year. The deficit limit of 3% of GDP set by the EU would still be met however, a government source assured today.

The delay was brought about by deep divisions in Italian Prime Minister Enrico Letta's coalition government on the implementation of additional austerity measures. Nevertheless, it should not be considered as a violation of EU rules, since Member States are given more time to attain the structural balanced budget goal provided their budget deficit is under the 3% threshold.