EU's Rehn says supports Italian trade debt liquidation

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.

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)