Italy must contain deficit by reducing spending

LONDON: Italy must contain its budget deficit by keeping spending under control, Economy Minister Giovanni Tria said on Tuesday, looking to reassure investors that the government would not let state accounts run out of control.

The European Union is widely expected to impose disciplinary procedures on Italy over its huge public debt, amid concerns that Rome was poised to slash taxes and challenge EU deficit rules.

Speaking to reporters after meeting investors in London, Tria also reiterated that Italy did not need to introduce controversial mini-BOTs, or short term bills, which the coalition League party is promoting despite fears such an instrument could break EU finance regulations.