EU ministers ignore budget rule revamp for Italy

HELSINKI, Sept 15 (AFP): The EU's most powerful members ignored on Saturday a call by Italy to reform the European Union's budget rules, handing an early setback to the pro-European government in Rome.

EU finance ministers meeting in Helsinki discussed a possible update to the EU's rules on public spending, but key countries Germany, France and the Netherlands were represented by subordinates.

Italian Prime Minister Giuseppe Conte called this week for the EU's Stability and Growth Pact, which limits budget deficits to three per cent of gross domestic product in member states, to be "improved" and simplified.

The pact was the main bone of contention between the European Commission and the previous populist government in heavily indebted Italy, which must submit a balanced budget to Brussels in the coming weeks.

Reforming the rules, which also include a 60 per cent of GDP cap on debt, sharply splits Italy from the EU's richer members that are loathe to ease the pressure on Rome's chronic overspending.