Monday, September 5, 2011

ECB warns Italy over austerity plan


Italian Prime minister Silvio Berlusconi (file photo)

Source: Press TV
http://www.presstv.ir/detail/197378.html

The European Central Bank (ECB) has urged Italy to promptly implement austerity measures adopted earlier, amid worries over the country's credit worthiness.

"The ECB and euro system as a whole consider the measures announced by the government…extremely important in order to rapidly diminish the public deficit of Italy and improve the flexibility of the Italian economy," Reuters quoted ECB President Jean Claude Trichet as saying.

"It is essential that the targets announced to cut the deficit will be fully confirmed and implemented. This is absolutely decisive to consolidate and reinforce the quality and the credibility of the Italian strategy and its creditworthiness," he added.

Despite Prime Minister Silvio Berlusconi's austerity plan unveiled few weeks ago, the Italian government has failed to adopt the measures, believing that key measures such as a pension overhaul and a wealth tax should be scrapped.

The European Central Bank has so far spent EUR 41.6 billion on buying the Italian and Spanish bonds in an attempt to stop the downward pressure on their price.

Italy's Foreign Minister Franco Frattini said his government would urge the ECB to continue buying bonds for the country.

Italy's budget deficit currently stands at 3.8 percent of the country's GDP. The Italian government introduced a EUR 48-billion austerity package in July to balance its budget.

Earlier, Berlusconi promised to fast forward the plan and get the budget into balance by 2013.

So far, Greece, Ireland and Portugal have received bailout packages from the European Union. There are growing fears that Italy may be next in line to eclipse the previous bailouts and further undermine the Euro.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab