EU experts in Rome as Europe seeks extra budget measures
A first group of European Union experts arrived in Rome on Wednesday to enforce special surveillance on Italy's efforts to cut its debt as Europe called for extra measures to balance the budget by 2013.
"The experts arrived today," Anguel Beremliysky, a spokesman for the European Commission in Rome, told AFP, adding that they would present a report on the progress being made by Italy to Brussels by the end of the month.
Italy last week at the G20 summit was forced to accept a humiliating monitoring mechanism by the European Union and the International Monetary Fund as its borrowing rates hit record highs, fanning fears of a debt blow-out.
In a questionnaire sent to Italy, the European Commission said it did not believe that the current measures envisaged by the government were sufficient.
"As we estimate that in the current economic context the planned fiscal strategy dopes not ensure the achievement of a balanced budget in 2013, additional measures will be needed," it said.
"Are contingency measures being prepared already now and, if so, what kind of measures are they? Would they take the form of further expenditure restraint, based on the results of a thorough spending review?" it added.
Italy's parliament in September adopted its second austerity package in three months, with measures including an increase in the sales tax.
Total savings by 2014, including the measures adopted previously, are now estimated at around 60 billion euros ($82 billion).
The government has also promised a series of ambitious economic reforms including an overhaul of labour laws that have infuriated trade unions and plans to hike the retirement age.
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Source: EU Business
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