September 4, 2014 / 7:11 AM / 3 years ago

Italy to continue freeze on public service pay in 2015

ROME (Reuters) - Pay rises for Italy's 3 million public servants will be blocked in 2015, the minister for the public administration said late on Wednesday, a move expected to save some 2.1 billion euros ($2.76 billion) from next year's budget.

"At the moment, the resources to unblock the contracts aren't there because Italy is still in a difficult economic situation," Marianna Madia told reporters in the Senate, confirming that a pay freeze in force since 2010 would continue next year.

Italy, now in its third recession since 2008, has committed to European Union budget rules limiting the deficit to 3 percent of gross domestic product and will have to cut spending by some 20 billion euros next year, Prime Minister Matteo Renzi said on Wednesday.

The government's most recent official budget planning document issued in April had penciled in 2.1 billion euros to pay for an increase in public service salaries in 2015.

(1 US dollar = 0.7610 euro)

Reporting by Giuseppe Fonte; Editing by Catherine Evans

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