ATLANTA (CNN Wire) -- The Italian parliament is expected to face a crucial vote on budget reform measures Tuesday as the country's president warned of a credibility gap if it failed to make such changes.
Last month, Italy agreed to implement structural reforms during an European Union meeting in Brussels. Italian President Giorgio Napolitano said the reforms must be put in place.
The developments came as Prime Minister Silvio Berlusconi denied Monday's rumors that he might resign, highlighting Europe's growing unease in Italy's economy.
"The rumors of my resignation are groundless," a message on his official Facebook page said.
A press aide to Berlusconi also told CNN he had no plans to resign.
But there are growing fears that Berlusconi's government no longer has the strength to push through the austerity measures needed to get the economy back on track.
These include tax increases and raising the retirement age by two years to 67.
A vote to pass the reform measures could give the embattled government enough fortitude to keep the prime minister in power.
Although Italy passed a package of austerity measures in September, including tax increases, some economists fear that without further reforms its debts could become overwhelming -- and there would not be enough money in the European rescue fund to bail it out.
Italy has one of the largest bond markets in the world, worth an estimated €2 trillion (about $2.8 trillion).
0 comments:
Post a Comment