* Too soon to change prudent fiscal policy
* Italy has structural problems including low productivity
(Adds further quotes)
TRIESTE, Italy, Dec 3 (Reuters) - Italy has little fiscal elbow room but has handled the crisis well though conditions for discretionary measures are limited, the International Monetary Fund's (IMF) executive director for Italy said on Thursday.
"Italy has little margin for fiscal manoeuvres," Arrigo Sadun said on the sidelines of a conference.
"The fund has noticed that ... during the crisis the Italian authorities have handled the crisis with an almost perfect fiscal policy, in a context in which conditions for discretionary interventions were very reduced."
Sadun has said that Italy's low productivity will mean its economic growth is less than other European countries. [ID:nGEE5B005A]
"The effect of the fiscal stimulus was not dissimilar to that of other European countries despite (Italy) having less room for manoeuvre on discretionary interventions," Sadun said.
He added it was premature for Italy to modify its prudent fiscal policy.
"There is no doubt that one of the problems of the Italian economy is a structural problem of low productivity and so ... one of the fundamental objectives should be to bring Italy's potential growth rate in line with that of other European countries," he added.
(Reporting by Carlo Saccon, writing by Jo Winterbottom, Editing by Lin Noueihed)
((jo.winterbottom@thomsonreuters.com; +39 02 66129 442; Reuters messaging: jo.winterbottom.reuters.com@reuters.net))