Italy must keep its public accounts in check and stay on its planned path to lower debt as its economy shows signs of emerging from recession, European Central Bank Executive Board member Peter Praet said in interview on Sunday.
Praet said there was still risk of another slowdown in the euro-zone's third-biggest economy if economic reforms were not brought in.
"To stay on a sustainable path, it's essential that the government maintain its commitments," the economist told Italy's La Stampa newspaper. "You cannot afford any slippage on the public accounts."
Praet said fundamental issues such as labour market flexibility and bureaucracy had to be addressed, particularly in an economy that included a large number of small businesses.
Praet also said the ECB was ready to act if banking credit dries up and threatens a recovery in the euro-zone, although he added that the outlook for investments in the region was improving.
Asked how he would respond to those who proposed leaving the euro as an option for Italy, Praet said discussions about abandoning the single currency "do not reflect reality".
Italy's economy remained flat in the third quarter after two years of contraction, but a spokesman for national statistics bureau ISTAT said earlier this month that was insufficient to show the recession was over.
Before rounding, GDP showed another marginal decline between July and September, he added.
