By Anna McLauchlin - 2nd March 2004
Rome has confirmed its public debt came in at 106.2 per cent of GDP in 2003, way above Brussels' 60 per cent target.
The European Commission is likely to take a dim view after warning in January that Rome's debt would not come under 100 per cent of GDP by 2007 and urging the government to adopt sustainable economic measures.
Although Italy managed to cut debt by 0.5 per cent of GDP from last year, it missed the government's initial target of 104.9 per cent.
And the country is also experiencing the same sluggish growth as the rest of the eurozone.
The economy only grew by 0.3 per cent last year, disappointing the government's 0.4 per cent target and prompting prime minister Berlusconi to call for an "economic growth plan".
But while its economy may be of concern in Brussels, Rome is not likely to come under the same scrutiny as France and Germany.
Its all-important budgetary deficit is still below the crucial three per cent of GDP limit laid out in the EU Stability and Growth Pact, although this is largely due to €19.9 billion in one-off measures that cannot be repeated.
Deficit for 2003 reached the government's target of 2.4 per cent of GDP, beating the commission's forecast of 2.6 per cent.
France and Germany both informed Brussels on Monday that their deficits would fall short of predictions, which could hamper promises to bring debt down to EU levels by next year.
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