Thread: Italy's downgrade pressures Berlusconi

Italy's downgrade pressures Berlusconi

Thu Oct 6, 2011 7:22PM GMT


Italian Prime Mimister , Silvio Berlusconi (file photo)

Italy's credit rating downgrade by Moody's agency has been a major blow for Prime Minister Silvio Berlusconi and his government failed policies.

The three-notch slashing of Italy's credit status on Tuesday had been widely anticipated in Rome as the government struggled with huge debt crisis for a long time, Deutsche Welle reported.

The European Central Bank has also demanded harsh austerity measures from Rome. Yet, there are doubts about how serious Italy is about coming to grips with its debt.

The Italian government has announced an austerity package aimed at stopping its debt crisis.

However, the measures have triggered widespread protests and political power struggles within the ruling center-right coalition.

Currently the strongest criticism of Berlusconi's economic policies comes from his finance minister, Giuliano Tremonti.

When asked why countries in similar economic trouble weren't downgraded, Tremonti said "the difference between Spain and Italy is that in Spain they have announced elections, which shows openness to change and a future."

In addition to his disputes with Tremonti that have stalled key decisions, Berlusconi has been attacked by senior Italian clerics over his sex scandals, urged to resign by the country's leading business newspaper, and seen his court cases pile up, from alleged tax fraud to paying for the services of an underage prostitute.

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Italy bonds devalued on econ. jitters

Wed Oct 5, 2011 8:7AM GMT


Italy and the eurozone are facing a debt crisis.

Moody's credit rating agency has downgraded Italy's government bonds as the eurozone's third largest economy struggles with a burgeoning debt and a faltering economy.

In a statement, the agency said Monday's downgrading of Italy's bonds from “AA2â€