Schaeuble OKs Renzi growth plans with fiscal caveats

Reforms to boost productivity, employment 'greeted favourably'

(ANSA) - Berlin, March 17 - German Finance Minister Wolfgang Schaeuble on Monday hailed Italian Premier Matteo Renzi's plans to boost growth and productivity but said Italy should continue with fiscal consolidation. Schaeuble met with Economy Minister Pier Carlo Padoan, whose office reported that the talks were held in a "constructive atmosphere", while Renzi met with German Chancellor Angela Merkel. The note said that Schaeuble 'greeted favourably' the Italian government's goals of speeding reforms to increase productivity and economic growth while reducing youth unemployment.

But it added that the German government hopes that fiscal consolidation will not be postponed in Italy.