The European Commission supports Italy's plan to accelerate the liquidation of trade debt accumulated by its public administration, it said in a statement on Tuesday.
"Given Italy's considerably improved budgetary situation, there is scope for a phased liquidation without endangering the sustainable correction of the excessive budget deficit," said top EU economic official Olli Rehn.
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The Commission said it trusted Italy would prevent the accumulation of new trade debts at all levels of government in the future.
(Reporting By Ethan Bilby; editing by Ben Deighton)