Weekend Economists Tickle the Ivories September 20-22, 2013

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44. Italy economy minister threatens to resign: paper

http://www.reuters.com/article/2013/09/22/us-italy-economymin-idUSBRE98L06820130922

(Reuters) - Italian Economy Minister Fabrizio Saccomanni will resign if the fragile coalition government flouts European Union deficit spending limits in favor of tax cuts, he told Corriere della Sera newspaper on Sunday.

The departure of Saccomanni, a former high ranking Bank of Italy official who is not affiliated to a political party, would be a blow to Italy's credibility with the financial markets as it battles to emerge from its longest recession in six decades.

Italy's accounts are heading toward overshooting the EU deficit limit this year, Saccomanni said on Friday, just months after the country was taken off a black list for running excessive budget gaps in the past.

While the minister said he would do all it takes to keep the deficit below the 3 percent of output ceiling, senior coalition members have pledged to go ahead with tax cuts amid a growing sense that a national election may be just a few months away.