* Rehn expects euro zone govts to have concrete budget plans
* Countries that can must continue with stimuli
* Exports must be balanced with stronger internal demand (Adds quotes, background)
MILAN/FRANKFURT, May 11 (Reuters) - Italy and France must step up fiscal consolidation efforts, the European Union's monetary affairs chief Olli Rehn was quoted as saying in newspaper interviews published on Tuesday.
"Italy finds itself in a different situation from other countries because it hasn't distributed massive budget stimuli. But it has a very high debt, and the dynamic of that has to be put under control," Rehn said in an interview with Il Sole 24 Ore newspaper.
"In Italy, the process of public accounts consolidation must be intensified," he said.
In a separate interview with German daily Handelsblatt, Rehn reiterated that Italy must step up its consolidation efforts, adding: "That goes for France as well."
Rehn said the European Commission's assessment of budget drafts, before being debated on national levels, must become a part of a planned strengthening of European budget rules.
He said EU finance ministers would discuss proposals for changes to the system at a meeting on Monday.
Italy cut its economic growth outlook and raised its debt forecasts last week, before a weekend EU-IMF agreement on a $1 trillion emergency package to stabilize the euro zone. [ID:nLDE6451WR]
The Economy Ministry said the primary budget balance would be improved by a total of 1.6 percent of gross domestic product with measures worth 0.8 percent in 2011 and the same in 2012.
The Italian government is likely to bring forward to this month budget correction measures worth some 25 billion euros to fulfil its 2011-2012 deficit-cutting targets, a source closed to the matter said on Monday. [ID:nTST002282]
Rehn said Spain and Portugal also needed to consolidate budgets urgently and beyond these, "there are other countries that need to take new measures".
"I am expecting, therefore, that all euro zone (countries) will tell the Eurogroup on Monday what they plan in concrete terms," he said.
"You have to find the right balance between exit strategies from budget imbalances and reinforcing economic growth. Whoever has the space must continue with stimuli," Rehn said, citing Germany as an example.
Rehn said Europe as a whole risked weak growth if countries failed to stimulate internal demand even though their exports were strong.
"No one wants to weaken great performances on the export front. But that has to be balanced otherwise there will always be weak economic growth not just in the south of Euro land but in the whole European Union."
(To read more stories on the euro zone crisis, click [ID:nTOPNOW2]) (Reporting by Jo Winterbottom and Martin Santa, , editing by Mike Peacock)