* Eurogroup head Centeno urges Rome to respect commitments
* Italy risks disciplinary action over debt that could leadtofines
* Italy's Tria seeks compromise but offers no new measures (Adds quotes from Dombrovskis, Tria)By Francesco Guarascio and Jan StrupczewskiLUXEMBOURG, June 13 (Reuters) - The European Union's push tobring Italy into line with the bloc's fiscal rules intensifiedon Thursday as top officials called for new measures to addressbudget shortfalls and raised concerns for the euro zone'sstability from Rome's high debt.The European Union is hardening its stance towards theeurosceptic government in Rome after recent data showed Italyhad failed to meet budget targets that were softened in Decemberunder a lenient interpretation of the bloc's fiscal rules."It is important to keep up with the commitments," MarioCenteno told reporters before a meeting of euro zone financeministers that will address Italy's fiscal woes and discuss apending disciplinary procedure that could lead to fines.Arriving at the meeting, the EU's commissioner for the euroValdis Dombrovskis said Italy needed "substantial corrections"to its public finances to meet fiscal targets agreed withBrussels.
Several finance ministers invited Italy to make concessions,confirming their view that a disciplinary action against Romewas justified by data available at this stage [ .
But Italy's Finance Minister Giovanni Tria said new data onthe country's lower deficit showed additional measures were notneeded. Sounding more conciliatory, he added that he wanted tofind a compromise with the EU and was ready to improve publicfinances if necessary.
STABILITY WARNINGCenteno, who chairs the powerful Eurogroup of financeministers from the 19 euro zone countries, urged Rome to clarifyits intentions over the budget, after a flurry of contradictorystatements from the Italian government in recent days.Italy's Prime Minister Giuseppe Conte and Tria have saidthey want to comply with EU fiscal rules. But leaders of theparties making up the ruling coalition have taken moreconfrontational positions, seeking large tax cuts and calling EUfiscal rules obsolete.Reducing Italy's debt "is of utmost importance for growth,for the stability of the euro zone," Centeno said in a remarkthat underlined the EU's concerns over the dangers posed byindebted countries.Prompted to clarify how big a risk Italy's rising debt wasfor the bloc, Centeno said: "I won't mention precisely risks ofinstability ... but we need to reassure everyone that thecommitment is there."
Under EU rules, countries with large debts must reduce themand should also improve their structural deficits, excludingone-off revenues and expenditures, to make the debt burden moresustainable.The EU's executive Commission forecasts that Italy's debtwill rise further above the EU's ceiling of 60% from about 132%of its economic output at present.
Its structural deficit, which should have decreased by 0.6percentage points this year under EU fiscal rules, is insteadprojected to worsen by 0.2 percentage points.
That is also in breach of a compromise reached with Brusselslast December, which in a "borderline" deal struck at the lastminute to reduce market pressure on Italy, allowed Rome to keepits structural gap unchanged this year. Centeno said what he expected to hear from Italy's financeminister was "that the targets that were committed by theItalian government at the end of last year are achieved".Italy and the European Commission have been at loggerheadson fiscal policy since an anti-austerity government comprisingthe right-wing League and the anti-establishment 5-Star Movementtook office a year ago promising to boost welfare and cut taxes.
(Additional reporting by Gabriela Baczynska, Editing byCatherine Evans)