Italian economy minister predicts 1% GDP rise next year

Italy's gross domestic product (GDP) could climb by 1 percent or more next year, Minister of Economy and Finance Giulio Tremonti said on Tuesday.

Addressing an annual conference of the Italian entrepreneurs' association, Tremonti was optimistic about Italy's economic recovery and hailed government measures in tackling the financial crisis.

Tremonti urged tight control over public spending, which is also supported by Prime Minister Silvio Berlusconi.

The minister promised a reduction in the cost of local government, with a series of reforms to cut the number of public employees.

On calls for cuts on public health spending, Tremonti said this was not possible and Italy's health system "costs less than the European average but has a higher return."

"We certainly cannot turn to workers and say: we're going to cut your taxes but also your health care," he added.

Source: Xinhua