Italy to delay balanced budget by a year: report

FRANKFURT (MarketWatch)
The Italian government will delay its plan to reach a balanced budget in 2013 by a year due to a weaker economic outlook, Reuters reported Wednesday, citing a draft document expected to be approved by Prime Minister Mario Monti's cabinet later in the day
The plan raises Italy's 2012 deficit target to 1.7% of gross domestic product from 1.6%, the report said, while the 2013 goal is raised to 0.5% from 0.1%
The plan calls for a nearly balanced budget, with a deficit of 0.1% of GDP, in 2014
Italy has one of the smallest deficits in the euro zone but is struggling to convince investors it can rein in the size of its overall debt pile, which at around 120% of GDP is second only to Greece in the euro zone