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EU tells Italy to stick to cutting budget deficit

European Commission Vice-President Valdis Dombrovskis holds a news conference in Brussels, Belgium March 7, 2018. REUTERS/Eric Vidal

BRUSSELS (Reuters) - Italy's new government needs to stick to fiscal discipline and keep reducing the country's public debt, European Commission Vice President Valdis Dombrovskis said on Thursday.

The anti-establishment 5-Star Movement and the far-right League were nearing a deal on Thursday to form a new government that could implement high-spending policies.

Dombrovskis said it was important for Italy to stick with a programme of cutting its budget deficit and public debt.

"This is an important risk factor and drag on the economy," Dombrovskis told the European Parliament.

"This is our message to the new government. It's important to stay the course," Dombrovskis said.



(Reporting by Huw Jones; Editing by Kevin Liffey)