BELGIUM: BERLUSCONI ESCAPES HUMILIATING WARNING AFTER PROMISING EU FINANCE MINISTERS PACKAGE OF BUDGET CUTS.

Record ID: 208378

  • Title: BELGIUM: BERLUSCONI ESCAPES HUMILIATING WARNING AFTER PROMISING EU FINANCE MINISTERS PACKAGE OF BUDGET CUTS.
  • Date: 6th July 2004
  • Summary: (W6) BRUSSELS, BELGIUM (JULY 5, 2004) (REUTERS - ACCESS ALL) 1. GV: EXTERIOR OF EUROPEAN UNION COUNCIL 0.05 2. MV/PAN/CU: PAN FROM REPORTERS TO ITALIAN PRIME MINISTER SILIVIO BERLUSCONI; ITALIAN PRIME MINISTER SILVIO BERLUSCONI (2 SHOTS) 0.16 3. MV: GERRIT ZALM DUTCH FINANCE MINISTER 0.22 4. MCU; NICHOLAS SARKOZY FRENCH FINANCE MINISTER 0.29 5. GV: REPORTERS IN MEETING 0.33 6. GV/PAN/GV: FRENCH FINANCE MINISTER NICHOLAS SARKOZY SPEAKING TO REPORTERS; REPORTERS LISTENING (2 SHOTS) 0.47 7. (SOUNDBITE) (French) FRENCH FINANCE MINISTER NICHOLAS SARKOZY SAYING: "Frankly I think that the idea of an European economic government carrying a european economic strategy is an idea which has progressed." 0.59 8. MV: REPORTER 1.05 9. MV/PAN/GV: BERLUSCONI ARRIVING FOR PRESS CONFERENCE; TAKING QUESTIONS (3 SHOTS) 1.18 10. (SOUNDBITE) (Italian) ITALIAN PRIME MINISTER SILVIO BERLUSCONI SAYING: "I think its necessary now within the government coalition to stabilize, to realize our fiscal ability program, that is one of the most important points of our program." 1.32 11. MV: REPORTERS WATCHING BERLUSCONI 1.37 12. (SOUNDBITE) (Italian) ITALIAN PRIME MINISTER SILVIO BERLUSCONI SAYING: "I cannot give an hypothesis, it is clear that we need a minister able to focus on his work in the ministry which concentrates so many responsibilities. It is important right now that a minister of finance is someone who in a short period of time can put into effect the programme which has been on hold which is so important for our country and for the government which has promised the public to reduce taxes."; BERLUSCONI LEAVING 2.24 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 21st July 2004 13:00
  • Keywords:
  • Location: BRUSSELS, BELGIUM
  • Country: Belgium
  • Reuters ID: LVA94521RYQK09QHKYK30SU59MWF
  • Story Text: Italian PM Silvio Berlusconi escaped a humiliating
    budget warning on Monday after promising EU finance
    ministers a package of budget cuts.



    Italian Prime Minister Silvio Berlusconi escaped a
    humiliating budget warning on Monday (July 5) after
    promising European Union finance ministers a package of
    budget cuts.

    Standing in for ousted Economy Minister Giulio
    Tremonti, the Italian premier laid out plans for 7.5
    billion euros (9.21 billion United States dollars) of
    measures this year to keep Rome's deficit below the EU cap
    of three percent of gross domestic product.

    This was good enough for EU finance ministers, whose
    only caveat was that Rome had to ensure any tax relief
    measures should be financed by savings in public spending
    and speed up debt reduction.

    Berlusconi offered up 5.5 billion euros worth of
    spending cuts and tax measures, and topped it up with
    one-off measures worth a further 2 billion euros. The
    package is expected to be put to the Italian cabinet in the
    next 10 days.

    The political ructions that led to Tremonti's departure
    at the weekend prevented the Italian cabinet from
    discussing the proposals but Berlusconi assured finance
    ministers he would face no problems in winning such backing.

    The Commission has forecast that Italy's budget deficit
    will hit 3.2 percent of GDP in 2004 and 4.0 percent in 2005.

    Italy, the euro zone's third biggest economy, follows in the
    footst
    eps of Germany and Portugal, which escaped
    warnings in 2002 and had been assured of equal treatment
    even before the meeting of euro zone finance ministers
    kicked off.



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