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Italy to face international pressure if crisis drags on
September 29, 2013 / 3:45 PM / 4 years ago

Italy to face international pressure if crisis drags on

ROME (Reuters) - Italy could face heightened pressure from international authorities if the current political crisis in Rome were to persist and reverberate through the euro-zone, Labour Minister Enrico Giovannini said in an interview.

Speaking a day after Silvio Berlusconi pulled his ministers out of the cabinet, Giovannini said the move, which effectively breaks up Prime Minister Enrico Letta’s government, is likely to cause instability on financial markets on Monday.

But he said that volatility need not last if there is a quick resolution to the crisis.

Giovannini said Italy faced no risk of being put under any sort of oversight by the so-called “troika” of international lenders made up of the International Monetary Fund, the European Central Bank and the European Commission.

Neither did the coutry risk violating its commitment to keep the budget deficit under 3 percent of national output.

“The government, whichever it may be, will take the measures needed to stick to Italy’s commitments,” said Giovannini, who was brought in by Letta from his previous post at the helm of Italy’s statistics agency in April.

“There is no risk the 3 percent will be violated in the next few years. We are absolutely on safe ground.”

But he added: “If instability were to persist and affect the euro zone, then international authorities could put much stronger pressure on national authorities.”

Reporting By Alessandra Galloni

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