The Italian government's 100 million euro ($120.2 million) plan to help its poultry sector survive the bird flu crisis was rejected by President Carlo Azeglio Ciampi on Friday due to lack of funds.
Parliament approved tax breaks for the poultry industry on Wednesday, but Ciampi, who has the final say on legislation, sent the bill back, saying it did not have the financial cover needed, according to a statement from his office.
The bill will now be discussed again in parliament next Tuesday. Although Italy's legislature is formally closed in the runup to an April 9 election, it can convene for urgent matters.
Chicken sales have plummeted 70 percent in Italy due to consumer fears over bird flu and the sector has cut 30,000 jobs due to the crisis, farmers' confederation Coldiretti has said. Italy was one of the first countries in the European Union to discover the deadly H5N1 virus when, on February 11, it was confirmed found in several wild swans.