ITALY: DEBT MUST BE REDUCED BEFORE LAUNCHING EURO CURRENCY

Описание: (27 Apr 1998) Italian/Eng/Nat

Italy is determined to be one of the 11 countries chosen next month to launch the single European currency.

But Italy's public debt is more than twice that allowed for monetary union and pressure has mounted on the country's centre-left government to act.

In response, Italy's government has approved a three-year budget plan aimed at cutting debt and creating jobs.

By May, Italy hopes to join 10 other countries in launching the single European currency, the Euro.

But in order for Italy to be successful, strict economic policies must be maintained to reduce Italy's debt load, which is twice that allowed by the monetary union.

Some, like Prime Minister Romano Prodi, believe the best way for Italy to lower its debt is to have a government budget promoting economic growth.

Last week, his government approved a three-year budget plan aimed at cutting debt and creating jobs.

SOUNDBITE: (English)
"There will be an accurate care to control our strategy of decreasing the debt burden. We are very coherent concerning our proposal and our plan. The debt will be cut three points each year for the next period."
SUPER CAPTION: Italian PM Romano Prodi

While Italy's government wrestles with debt management, a massive information campaign has been launched to prepare Italians for the advent of the Euro.

Even if Italy is among those launching the currency next month, the new Euro won't fill pockets, wallets, bank accounts and vending machines until 1 January, 2002.

For six months after that date, Euros will circulate alongside the Italian liras until those are withdrawn on 1 July 2002.

None-the-less, the Eurodesk of Italy's Treasury Ministry is already running commercial information spots during prime time television programmes.

SOUNDBITE (Italian)
"We preferred to use 3-D cartoons to make them as familiar and easy as possible because even though Italians are very favourable to the Euro, they still have some concern on how the change of the currency will take place."
SUPER CAPTION: Paolo Peluffo, Spokesman for Treasury Minister Carlo Azelio Ciampi
Some Italians feel there may be a price to pay in terms of unemployment and loss of control of specific budgetary instruments.

But so far, the majority of the Italian public seems to be showing strong support for the Euro currency.

In the 1970s and 1980s, Italians ranked highest among those supporting the idea of a European Union.

And today, statistics confirm that 70 percent of the population strongly welcomes the Euro.

SOUNDBITE: (English)
"The widest support for the Euro nationally broken down comes from the Italians. They are very supportive of Europe. They see the creation of a European union as a way of solving the inefficiencies of the Italian government."
SUPER CAPTION: Professor Franco Pavoncello, Economic Analyst and Professor of Economics at John Cabott University in Rome

E-U leaders will meet on 2 and 3 May to decide which nations will join the Euro.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...