Business, Finance & Economics

Italy invites IMF to monitor debt progress


Silvio Berlusconi shows the pressure at yesterday's Euro Summit in Brussels. There is no relief in sight for Italy's Prime Minister as his colleagues pile pressure on him to take the necessary steps to stave off a possible sovereign debt crisis in Italy.


Georges Gobet

Italian Prime Minister Silvio Berlusconi voluntarily agreed to allow the International Monetary Fund monitor the implementation of proposed fiscal reforms, CNN reported.

“It hasn’t been imposed, it was requested,” Berlusconi said, Bloomberg reported.

The government called on the IMF to join the process and periodically asses its debt-reduction progress, Berlusconi announced at the Group of 20 summit in Cannes, France Friday, Bloomberg reported. While at the G20 summit, Berlusconi also confirmed his commitment to the pledges he made last week, such as changing Italy’s pension scheme, privatizing state assets and boosting public investment in the economy, the Wall Street Journal reported.

Read more at GlobalPost: Italy's Silvio Berlusconi wins confidence vote

Italy asked the IMF to check over its books every three months to ensure a $75 billion austerity package is being correctly carried out, the New York Times reported. According to the WSJ, an official said the talks also included discussions pertaining to what measures may be required to create a protective fire wall for the euro area’s financial system if Italy’s government bonds continue to suffer.

The measures are still being drafted for an amendment to be included in the 2012 budget law, WSJ reported.

Similar to Greece, Italy is facing economic troubles due to the euro zone crisis. Italy hold Europe’s second-biggest debt. Many calls for Berlusconi’s resignation have been made, but he reiterated today he will not step down, Bloomberg reported.

Read more at GlobalPost: Berlusconi pressured to resign by former loyalists

Berlusconi again asked to hold a confidence vote in Parliament at some point this month, on the economic-growth and austerity measures promised to the EU last week, Bloomberg reported. His last confidence vote was held weeks ago on Oct. 14.