Italy's minister pushes review of EU monetary, fiscal policy (UPDATE 1)

Italy's minister for European affairs Paolo Savona said on Wednesday he had presented to European Union legislators a document in which he proposes a review of the EU's monetary and fiscal policy.

Savona, who was the Italian government's original pick as an economy minister but vetoed by the head of state due to his critical opinion of the euro, said he presented to the European Parliament a document in which he proposed "to reassess the European monetary and fiscal policy in an integrated manner".

Savona was likely referring to a document he posted on his ministry's website a month ago.

In that paper, he called for the public debt of all eurozone states to be brought below 60 per cent of gross domestic product, via long-term restructuring underwritten by the European Central Bank.

At more than 130 per cent of its economic output, Italy has the second largest debt ratio of the bloc, after bailed-out Greece.

Speaking to reporters after meetings with EU legislators in the European Parliament in Strasbourg, Savona also said he wanted the establishment of a European school "to build political unity" in the European Union.