EventsEventsPodcasts
Loader
Find Us
ADVERTISEMENT

Italy's coalition parties struggle to restructure Rome's huge debts

Italy's coalition parties struggle to restructure Rome's huge debts
Copyright 
By Philip Pangalos
Published on Updated
Share this articleComments
Share this articleClose Button
Copy/paste the article video embed link below:Copy to clipboardCopied

The foundations of Italy's warring coalition parties are being shaken by the huge debt being faced by Rome and the urgent need for a financial bailout

ADVERTISEMENT

The foundations of Italy's warring coalition parties are being shaken by the huge debt being faced by the city of Rome and the urgent need for a financial bailout.

The capital's €12 billion debt mountain must be restructured to avoid defaulting, but the League and the Five Star movement are far apart on how to deal with the matter.

After hours of talks during a cabinet meeting, the two sides concluded on a compromise for a state rescue programme for the capital.

"The debt of 12 billion euros accumulated up until 2008 and is the result of the special committee that was appointed by the Berlusconi government, in which the League participated. After 2008, another 1.2 billion euros was added under Mayor Gianni Alemanno," said Rome deputy Mayor Luca Bergamo.

Mayor Virginia Raggi hopes for a state rescue so that the city does not find itself facing bankruptcy in 2022.

"Italy never enforced favourable arrangements for the capital, as did other European countries. According to Italian law, Rome does not have legal and administrative means, basically it does not have special financial funds," said deputy Mayor Luca Bergamo.

This is not the first time that government cohesion has been tested in Italy. Either way, analysts expect the situation to clear up after the Euro elections.

Share this articleComments

You might also like

Watch: Giant dictionary highlights Italian words at risk of disappearing

2018 review: EU and Rome at loggerheads over budget and debt

'No logo': Beef between Italian government and Fiat 500 maker turns personal