Bank of Italy expresses doubts about Renzi's economic plan

Central bank says cuts may not raise enough to reach goals

(ANSA) - Rome, April 15 - The Bank of Italy on Tuesday expressed doubts about the economic blueprint of Premier Matteo Renzi's government during a session in the Lower House. "In 2015 the expenditure savings indicated as the maximum obtainable from the spending review would not be sufficient to cover the programme goals," it said. Renzi's cabinet approved the blueprint, the Economic and Financial Document, last week. It includes ambitious plans for 10 billion euros in income-tax cuts targeting low-earners each year. The government said around 4.5 billion euros of the 6.7 billion needed to finance those cuts this year will come from an ongoing review of public spending.

Renzi's three-year blueprint foresees 26 billion euros in further public-spending cuts in 2015 and 2016. The Bank of Italy added that the target of raising the equivalent of 0.7% of Italy's gross domestic product by selling off public assets, properties and stakes in State-controlled firms was "ambitious". Parliament is set to vote on the DEF Friday so it can be delivered to the European Commission before the end of the month.