Tough measures needed to save accounts, Economy minister says

| Fri, 06/23/2006 - 03:45

Economy Minister Tommaso Padoa Schioppa reiterated to regional and local governments on Thursday that public accounts were seriously out of kilter and tough remedies were necessary.

The minister met representatives of local administrations in Rome to discuss an 'internal stability pact' with which he hopes to garner consensus for belt-tightening at all levels of government.

Referring to a planned mini-budget, needed to bring Italy's budget deficit down in line with European commitments, Padoa Schioppa said it would be "consistent with the situation of public accounts". The situation, he has said repeatedly, is extremely serious.

The former European central bank board member reportedly told participants at Thursday's meeting that public finance
were like a very sick patient requiring decisive action from doctors.

"You can't cure him with an aspirin," he added.

He told regional delegates however that the 'internal stability pact' he envisaged aimed not only at righting accounts but also at fostering growth.