by Alessandra Cardone
ROME, Nov. 8 (Xinhua) -- Italian Prime Minister Giuseppe Conte on Thursday said the European Union (EU) had no reason to worry and put into question the country's economic forecasts for the next two years.
Conte's declaration followed a report by the European Commission earlier in the day, in which it revised downward its forecasts about Italy's growth in 2019 and 2020, projecting a higher deficit than that expected by Rome.
"The EU Commission's growth forecasts for the next year underestimate the positive impact of our budget and of our structural reforms," Conte said in an official statement.
Conte maintained some planned structural reforms, such as the reform of job centres, a simplification of procurement code, the reform of civil code, and the investment plan, would soon benefit the Italian economy more than what the EU foresaw.
"There are no grounds for putting into question the validity and sustainability of our forecasts," the prime minister stated.
In its report "Autumn 2018 Economic Forecast", the European Commission said Italy's gross domestic product (GDP) would rise by 1.2 percent in 2019 and 1.3 percent in 2020.
Both figures were below the projections of the Italian government, which saw a growth of 1.5 percent and 1.6 percent in 2019 and 2020, respectively.
The EU executive body explained its revised forecasts depended on the fact that Italy's 2019 draft budget included measures that would boost public spending. "Envisaged policy measures might prove less effective, having a lower impact on growth," the Commission said.
Public spending would "significantly increase" due especially to the planned introduction of a minimum income scheme, higher flexibility for early retirement, and an increase in funds for public investment, according to EU authorities.
"Uncertainty about government policies might affect sentiment and domestic demand. Finally, the planned rollback of structural reforms bodes ill for employment and potential growth," the Commission added in the report.
Forecasting a slower growth for the country, the EU Commission pushed upwards its projections on the Italian deficit to 2.9 percent of GDP in 2019 and to 3.1 percent in 2020, against 2.4 percent and 2.1 percent projected by Rome.
The Commission's latest forecasts were consistent with its overall evaluation of the Italian 2019 draft budget, which was rejected by Brussels in late October for breaking EU fiscal rules that demand from all countries an annual decrease of deficit and public debt.
It was the first time ever the European Commission told a member of the euro zone to rewrite its budget plan.
Italy would have until Nov. 13 to modify its draft budget, or it may face a harsh EU disciplinary procedure.
As already said in latest weeks, Conte on Thursday stated the government had no plans to change its draft, and would rather "go ahead with our estimates."
