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Italy's government is open to making changes to its plans for a tax on energy transmission networks, Economy Minister Giulio Tremonti said on Saturday.
The proposed tax, aimed at bringing in 800 million euros in 2006, "maybe will be modified. The government is very open to making changes to it", Tremonti said at a conference.
The government put proposals for the tax in its 2006 budget which was presented last week. Gas and electricity transmission firms Snam Rete Gas and Terna have both criticised the tax, which analysts say would heavily cut into their profits.
Snam RG and Terna have both said they would use every means possible to fight the tax.
Snam RG had net profits of 526 million euros in 2004 while Terna earned 236 million euros at the net level that year.
Tremonti also said Italy's deficit/GDP ratio would not be 5 percent in 2005 but the country would stick to undertakings to reduce the deficit. "The budget goes in that direction," he said.

Copyright Reuters, 2005

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