Italy's tight budget plan "a positive message"

Secretary-General of the Organization for Economic Cooperation and Development (OECD) Angel Gurria on Monday praised Italy's newly approved budget plan aimed at cutting down deficit spending and boosting economic growth. "Now that the government has specified how it intends to stabilize its public finances by 2014 and this indeed sends a positive message of credibility and confidence to world markets," said Gurria in a closing speech at the East Forum 2011, a global financial conference jointly organized in Rome by the OECD and leading Unicredit Bank, Italian state television Rai reported. "I am glad that Italy is following recommendations set forth by the OECD and we are always willing to support the Italian government in implementing such important measures," added Gurria. Gurria also stressed the importance of balancing tight fiscal and monetary policies with "a social dimension" in order to overcome current economic obstacles and re-launch the economy. The Italian cabinet approved last Thursday a tight 47 billion euro (68 billion U.S. dollars) budget plan aimed at curbing its elevated debt and deficit levels in an attempt to shield the country from a possible domino-effect of the Greek debt crisis. The document is now set for approval by parliament before the summer break.