Europe Alarmed as Italy’s Austerity Plans Unravel

[alp227]

Source: The New York Times

ROME — Just a few weeks ago, Prime Minister Silvio Berlusconi announced a sweeping 45.5 billion-euro package of austerity measures to help Italy stave off a sovereign debt crisis. Today, those measures are unraveling, subject to so much backtracking and political wrangling that European leaders are raising the pressure on Italy to deliver as promised.

Every day, modifications to a wide array of steps — whether tax increases, pension spending or cuts to local government — appear and vanish like so many trial balloons as Mr. Berlusconi struggles to appease the conflicting vested interests within his own fractious coalition. Rounding out the fray are the center-left opposition and labor unions, which oppose many of the measures and have called a general strike for Tuesday.

This might seem the usual Italian political theater. But with the future of the euro in play, and with Mr. Berlusconi’s government weaker by the day, European leaders have become alarmed by the disarray. In an interview published Friday in an Italian business journal, the head of the European Central Bank, Jean-Claude Trichet, called the steps “extremely important.”

“It is therefore essential that the objectives announced for the improvement of public finances be fully confirmed and implemented,” Mr. Trichet added.

Read more: http://www.nytimes.com/2011/09/03/world/europe/03italy.html

[FLPanhandle]

1. One currency; many fiscal policies

Great during boom times. Untenable during bad times.

[Arctic Dave]

2. Wow, I thought there would be 100 post on this.

The EU could be collapsing and no one is even watching.

[jerseyjack]

4. Few posts because it is difficult for people to understand. Besides,

it is happening in Europe and their are parties to go to.

[Imajika]

5. There have been endless posts and comments on this issue...

The European sovereign debt crisis sparks some new emergency and disaster nearly every day. Many stories are incomplete, pure speculation or just false alarms.

Personally, I think the Eurozone will fall apart - or at least some countries will be forced to dump the Euro. It's going to get pretty ugly.

[riderinthestorm]

12. This is what? The fourth or fifth country in trouble? Greece, Ireland, Spain... now Italy

There have been huge stories all along but the "austerity" (cough - big EU banksters - cough) are winning every round. I highly doubt Italy will be any different. If Greece couldn't manage to fight it off, Italy has no chance if you ask me. The "private sector" is salivating at the chance to get at a whole new country's national assets I'm guessing. Italy has such lovely treasures....

So this is a variation (now) of a man-bites-dog news story. Until/unless Italy can shake off the banksters and re-write a different ending, its hard to rev up any steam for this. Germany's only going to prop up the EU for so long. I'm guessing there's betting pools already in Las Vegas on the euros demise.

[defendandprotect]

3. k/r

[aquart]

6. OR they could tax the rich.

[CTyankee]

11. I think they do a better job at taxation than we do...

[No Elephants]

13. Do they have more equitable tax laws, or do they actually collect the taxes, too?

Someone posted here that a lot of Greeks simply ignore tax laws. I have no idea if that is true or not.

[CTyankee]

14. It's what I hear about Italians, too. Who knows?

[Turbineguy]

7. They need to reduce the role speculators have

devaluing the currency and bonds.

And of course they should not take advice from American investment bankers.

[tama]

8. Citizens of EU and eurozone

are becoming day by day more fed up with politicians and bankers, parliaments and political parties. They have practically zero credibility left. Democratic legitimacy they lost when the people voted the neoliberal constitution down and then they forced it upon us anyway.

Just let it crash and stop moaning you fucking ECB IMF euro wankers bank robbers, because it will anyway and you will go down too. To the brave and wise people of Iceland, respect.

[NashVegas]

9. +1

[bemildred]

10. +2. nt