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Reply #21: Italy accepts IMF monitoring, EU looks for support [View All]

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-04-11 07:43 AM
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21. Italy accepts IMF monitoring, EU looks for support

Italy, under fierce pressure from financial markets and European peers, agreed to have the IMF monitor its progress with long delayed reforms of pensions, labor markets and privatization, senior EU sources said on Friday. Prime Minister Silvio Berlusconi, his government close to collapse, agreed to the step in late-night talks with euro zone leaders and U.S. President Barack Obama on the sidelines of a G20 summit in Cannes...
An Italian official denied that Italy was being singled out for special surveillance and said the whole euro zone would be under closer monitoring. (I'LL BET THEY ARE--DEMETER) However, he confirmed that Rome was willing to request IMF advice on implementing the commitments it gave EU leaders on specific reforms on October 27.

The move came after a European ultimatum made Greece step back from a referendum that could have triggered its exit from the euro area and agreed to seek national consensus in support of a new 130 billion euro ($178 billion) bailout program. By contrast, discussions with Italy were smooth, European diplomats said. Berlusconi appreciated the gravity of the situation and was thoroughly engaged in the talks

"We need to make sure there is credibility with Italy's targets -- that it is going to meet them. We decided to have the IMF involved on the monitoring, using their own methodology, and the Italians say they can live with that," one EU source said. "Italy has no problem with surveillance at all, even with the IMF being involved," he said, adding that the European Commission and the International Monetary Fund would each report separately on how Italy was meeting its targets. SOMEBODY CHECK AND SEE IF GUIDO IS HOLDING THEIR LOVED ONES HOSTAGE...

The leaders of France, Germany, Italy, Spain, the European Central Bank, the IMF and European Union institutions also discussed with Obama ways of ramping up the IMF's warchest to help prevent contagion from the euro zone's debt crisis plunging the world economy back into recession. A G20 source said no figures were agreed but the boost to IMF resources, mostly from large emerging countries such as China, could be in the range of $300-350 billion. EU officials said three options were under consideration, including pooling the euro zone countries' rights to borrow from the IMF to build a fighting fund to support vulnerable sovereigns such as Italy and Spain. This could make available another $280-300 billion, the G20 source said.

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