By Giuseppe Fonte and Gavin Jones

ROME (Reuters) -Italy’s new public finance targets to be unveiled on Thursday will show the government committing to more ambitious deficit reduction than previously planned, officials said, while confirming weak growth prospects, hit by U.S. trade tariffs.

Rome is expected to announce that the deficit will fall to the European Union’s 3% of gross domestic product (GDP) ceiling or slightly below this year, 12 months ahead of time and below a 3.3% goal set in April.

The improvement is being driven by stronger-than-expected tax revenue — in turn supported by job growth and inflation-driven fiscal drag — and lower debt servicing costs for the euro zone’s third-largest economy.

A deficit-to-GDP ratio at or below 3% would allow Italy to exit an EU infringem

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