The FINANCIAL — Italy's contribution to a hypothetical bailout for Spain would cost 1.5 percent of its gross domestic product (GDP), Finance Minister Vittorio Grilli said in an interview in La Repubblica on Friday.
"The past two years, our public debt has been increased by four percentage points because of loans to Greece, Ireland and Portugal," the minister said.
"If there is a package for Spain of no less than 100 billion euros ($130 billion), Italy's share would be the equivalent of 1.5 percent of GDP."
"We have to be generous but we also have to evaluate with prudence the impact on public finances. Especially since we are going through a phase that is still very, very difficult," he added.
As EUbusiness reported, the minister however repeated that Italy did not need a bailout.
"Our public accounts are safe and everyone recognises that," he said.
"The issue is no longer whether Italy has come out of it but what will happen in Italy after the 2013 elections and what will happen to reforms of the pension system and the labour market," he added.
Prime Minister Mario Monti has launched an ambitious reform agenda since coming to power in November 2011, aiming to restore the country's credibility on financial markets, keep public finances in check and boost growth.
Italy's economy entered recession in 2011 and is forecast by the government to contract 1.2 percent this year and 0.2 percent in 2013.
Italy's public debt to GDP ratio was 120.9 percent last year and its total debt is around 1.9 trillion euros ($2.5 trillion).
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