Ten Italian cities are at the risk of bankruptcy

July 24th, 2012 - 9:46 pm ICT by Aishwarya Bhatt  

Rome, July 24 (THAINDIAN NEWS) Ten Italian cities are looking at bankruptcy in the eye. They include Naples, Alessandria, Palermo and Reggio Calabria. Even Sicily’s financial situation isn’t great.

“The situation is becoming worse by the day,” according to Graziano Del Rio, who is the president of a national association of municipal councils.

The main reason behind the financial let down is the gross mismanagement by the government coupled with corruption. For years the governments have played around with the EU funds and wasted them. The Mafia chain has also helped a lot in the bankruptcy woes.

The national government is looking into the matter and they are enforcing huge cuts in the spending power of the cities. One of the main disadvantages of the cuts is that there is a persistent fear that the school in the black list might not open as there exists no money for the schools to function upon.

“With these cuts we won’t be able to guarantee the opening of the school year,” said Giuseppe Castiglione.
The country is presently facing a national debt of around 2 trillion Euros and the government is at its wits end to reduce it.

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