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Italy Faces Slower Growth, May Curb Deficit Cut Pace, Tria Says

  • Dialogue with EU aimed at shielding recovery: finance minister
  • Debt reduction key to keeping market confidence, he says
High Speed Train Manufacturing At Finmeccanica SpA's Ansaldo Breda Unit

Photographer: Alessia Pierdomenico/Bloomberg

A likely slowdown in Italy’s economic growth may lead the new government to reduce the pace of budget deficit reduction, the finance minister said.

“We think that the forecast budget levels for the next years, and in particular 2019, require a too strong adjustment,” Giovanni Tria told lawmakers in Rome on Tuesday, citing data that point to slower-than-expected economic growth this year. “We don’t think it’s useful to pursue policies that may turn out to be heavily pro-cyclical should growth be actually slower” than expected, he said.