Italy urged to shore up finances

BRUSSELS, April 8 (UPI) -- Italy has been strongly urged by the European Union to shore up its rapidly deteriorating public finances with an "immediate change of policy."

The word came from Pedro Solbes, European Union commissioner for monetary affairs, on the heels of data showing Italy and five other EU member states were headed toward "excessive" public deficits of more than 3 percent of gross domestic product, the Financial Times reported.

The other counties are Germany, France, the Netherlands, Greece and Portugal.

But, Italy is a particular worry because unlike the others, Rome reportedly has shown little willingness to slash its deficit by curbing spending or increasing revenues.

"The situation requires an early-warning recommendation with a view to inducing an immediate change in policy and preventing the occurrence of excessive deficits," Solbes said.

Italy's center-right government harshly suggested an anti-government campaign led by Romano Prodi, the Commission president and de facto leader of the Italian opposition.