10 Italian cities face bankruptcy: Report

July 25th, 2012 - 12:56 am ICT by IANS  

Moscow, July 24 (IANS/RIA Novosti) Ten Italian cities are facing bankruptcy as they are unable to fulfil their budget commitments, Italian newspaper La Stampa reported Tuesday.

Graziano Del Rio, president of National Association of Italian Municipalities, told the paper that many schools in Naples, Palermo in Sicily, Reggio di Calabria, Alessandria in Piedmont and in some towns might not start school lessons in the fall due to city budget deficits caused by huge cuts being implemented by the government.

The government has been trying to reduce the state debt of about two trillion euros by cutting the budgets of 64 out of 107 Italian provinces. This year the municipalities’ finances will be cut by 500 million euros (about $604 million), and by one billion euros in 2013.

The Italian government approved a programme in early July to cut budget spending by 26 billion euros in 2012-2014. About 10 percent of state employees and 20 percent of state agencies’ heads could be dismissed in the next three years.

–IANS/RIA Novosti
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