|Chaos Looms for Italy|
|by Tom McGregor||Wed, Jun 13, 2012, 10:32 PM|
Italy’s parliament is sending warning signals that it may no longer support the tough austerity measures that were introduced by Prime Minister Mario Monti. Accordingly, Italy appears to be on the verge of receiving a massive EU bailout, mostly financed by Germany.
According to Reuters, “technocrat Prime Minister Mario Monti appealed to Italy’s politicians on Wednesday to back his tough economic medicine to avoid Rome becoming the next victim of the euro debt crisis, after a bailout for Spain’s banks failed to calm markets.”
Monti’s approval rating is slumping since new taxes is igniting a deeper recession. He told parliament in Rome, “we should use these new difficulties to double our efforts both on the European front and within Italian politics.”
As reported by Reuters, “European Union paymaster Germany urged Italians to implement Monti’s painful fiscal and economic reforms to stay out of the danger zone: ‘If Italy continues along Monti’s path there will be no risks,’ German Finance Minister Wolfgang Schauble said in an interview with La Stampa daily when asked whether Rome was next in the markets’ firing line.”
Later that day, Monti met Schauble and announced Italy was preparing to sell state assets.
To read the entire article from Reuters, link here:
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