UPDATE 1-Italy's Di Maio commits to 2.4 pct deficit goal, euro currency
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By Gavin Jones
ROME, Nov 9 (Reuters) - Deputy Prime Minister Luigi Di Maiosaid on Friday Italy would meet its 2019 deficit target thanksto extra spending cuts, if necessary, adding that the governmentwas committed to remaining in the euro zone.
Speaking at a news conference with foreign reporters, Di
Maio said his party had reversed its previous anti-euro stancebecause changing equilibriums within the European Union meantItaly now "has a voice".
These shifting political weights will accelerate afterelections to the European Parliament next year, Di Maio said.
Di Maio, who leads the anti-establishment 5-Star Movement,said the government planned to abolish 200 "useless" laws inforthcoming reforms, and these cuts to bureaucracy would producea significant reduction in state spending.
He said he believed pressure on Italian government bondswould ease when markets realised the government was fullycommitted to holding the deficit inside its target of 2.4percent of gross domestic product next year.
"Spreads are high because markets think we will be closer to3 percent, but that is not the case. We have a pact to keep itto 2.4 percent," Di Maio said.
He promised to streamline the penal and civil code, simplifythe process for public tenders and increase the workforce thanksto a new programme of job training.
However Di Maio, whose party rules with the far-rightLeague, gave no indication that the government was willing tochange its 2019 budget as demanded by the European Commission,which says the expansionary budget breaks EU rules.
Italy must answer the EU executive by Tuesday and if, asexpected, Rome refuses to change the budget, this could triggera disciplinary process that may eventually lead to fines.
Asked it Italy would pay such fines, Di Maio said "pactsmust be respected", but he added that he did not expect anycharges to be levied and was confident that an agreement withBrussels would be reached.
Tensions have been rising between 5-Star and the League, butDi Maio said disagreements were to be expected between partiesthat were rivals before the March 4 national election, and theydid not undermine the stability of the government.
"The government will not fall, repeat after me, thegovernment will not fall," he told reporters, adding that he
was convinced the two parties would govern together for a fullfive-year term.
(Reporting By Gavin Jones; Editing by Crispian Balmer)
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