Monti the main man at money meeting

2011-11-28 12:19
Brussels - Italy's new Prime Minister Mario Monti takes centre-stage on Tuesday when euro finance ministers gather here for their last scheduled meeting of the year with partners concerned over IMF rescue planning.

The former EU commissioner gave himself the finance ministerial portfolio in the new unity government that took over from the coalition led by Silvio Berlusconi.

Monti is expected to unveil plans for accelerated reform at the meeting.

"The meeting is notionally about Greece, progress on leveraging up the size of the euro rescue fund and plans to ensure the medium-term liquidity of Europe's banks," said a European Union official, a veteran of such gatherings.

"But it will mostly revolve around Monti," he added.

IMF preparing loans - report

Detailed budget measures, which require final parliamentary approval, are due by a December 9 EU summit.

But Olli Rehn, European commissioner for economic and monetary affairs, suggested a more "ambitious timetable" was needed during a visit to Rome on Friday. Rehn will also attend the Brussels gathering.

Respected Italian daily La Stampa reported on Sunday that International Monetary Fund officials were preparing loans to the value of €600bn as a contingency.

That would give the Italian government up to 18 months' breathing space - as it has to refinance a staggering €400bn in debt next year.

Italy is the world's third-biggest sovereign borrower after the US and Japan. La Stampa's report suggested that this massive funding need meant the European Central Bank could become involved, using IMF guarantees.

€2trillion public debt

Contacted by AFP, the IMF declined to comment, but French President Nicolas Sarkozy's office made it clear that any problem with Italy would hit "the heart of the eurozone".

Prior to being forced from office, Berlusconi turned down an offer of financial aid from the IMF.

"We believed it was not adequate," he said in an interview on Sunday.

Italy's nearly €2trillion public debt heading into certain 2012 recession means anything more than a private discussion about such a rescue is not on the agenda in these talks.

So Tuesday's meeting, starting at 16:00 GMT, will begin with a decision - repeatedly delayed since August - on releasing an €8bn tranche of loans to Athens.
- SAPA
Read more on:    imf  |  mario monti  |  italy
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

40% off top appliances!

Save 40% on the top 10 appliances on kalahari.com. While stocks last. Shop now!

Save 20% on Camping gear!

Buy 4 camping items and save 20%. While stocks last. Shop now!

Fifty Shades of Grey!

This great read will captivate you from cover to cover and leave you itching for more. Get your copy now!

20% off braai items!

Save 20% when you buy 2 braai items. While stocks last. Shop now!

30% off Pampers!

Save 30% when you buy 3 or more selected pampers products. While stocks last. Shop now!

Horoscopes
Aquarius
Aquarius

You are on form and you may like an audience to share your ideas and concepts with. Drama and creativity flavour your...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.