ROME, Oct 28 (Reuters) - Italy has defended its rule-breaking 2017 budget to the European Commission, saying the migrant crisis, post-earthquake reconstruction and lower-than-expected growth were to blame.
Euro zone countries are obliged to cut their structural deficit, which excludes one-off items and the effects of the business cycle, by at least 0.5 percent of gross domestic product (GDP) per year until it comes into balance or surplus.
But in Rome's draft plan, the structural deficit rises 0.4 percentage points to 1.6 percent of GDP, rather than falling 0.6 points as requested by EU finance ministers in July.
Brussels asked Italy's government this week to explain why its budget does not lower the deficit as the rules require.
Italy's Economy Minister Pier Carlo Padoan said in a letter published late on Thursday that a weaker global economic environment means "the Italian economy is still experiencing difficult cyclical conditions and thus suggests a more gradual adjustment toward the medium term objective, which remains a balanced structural budget in 2019."
He did not offer to change the budget, which must be passed by parliament by the end of the year.
The Commission could reject the budget plan, but no decision is expected before a Dec. 4 referendum over Prime Minister Matteo Renzi's flagship constitutional reform.
(Reporting by Steve Scherer Editing by Gavin Jones and Louise Ireland)