Italy Moves to Satisfy Creditors This is the VOA Special English Economics Report.

The economic situation in Italy is worrying investors and may have cost its prime minister his job. i!e "reece# Italy is $acing pressure to ma!e unpopular cuts in government spending. %rime &inister Silvio 'erlusconi has been see!ing to enact measures meant to satis$y his country(s creditors. The interest rate Italy can e)pect to pay $or borrowing money is increasing and recently passed seven percent. This wee!# &r. 'erlusconi won a budget vote in Italy(s lower house o$ parliament. TRA*S ATOR+ ,Three hundred nine attending# three hundred eight in $avor# one boycotted# no vote against# the chamber approves.'ut the prime minister lost something else. A majority o$ lawma!ers in the lower house re$used to vote. It appeared &r. 'erlusconi had lost their support. .e announced on Tuesday that he would resign a$ter parliament passes budget cutting measures. Italian government debt is about one hundred twenty percent the si/e o$ the country(s economy. That is second only to "reece in Europe. "reece# Ireland and %ortugal have all re0uired rescue loans to help them pay creditors. 'ut unli!e those nations# Italy has the third largest economy using the euro. And it is among the ten largest economies in the world. On &onday# European $inance ministers met in 'russels to discuss the deepening debt crisis among nations using the euro. European 1nion Economic and &onetary A$$airs 2ommissioner Olli Rehn said Italy needs to enact re$orms. O I RE.*+ ,3It is4 essential now that Italy will stic! to its $iscal targets# ensure their implementation and intensi$y the structural re$orms that can boost growth and job creation., 1nli!e "reece# Italy(s budget de$icit is not out o$ control. O$ greatest concern# however# is Italy(s lac! o$ growth and job creation. 5inancial o$$icials and mar!et watchers are also concerned that Italy(s debt problems may be too big to solve $or the seventeen nations using the euro. European leaders have yet to agree on the si/e and conditions o$ a rescue $und# or plan. In 'russels# 6utch 5inance &inister 7an 8ees de 7ager said the rescue $und needed to be bigger. 'ut he said budget re$orm o$ euro nations was important# too. 7A* 8EES 6E 7A"ER+ ,9e have to increase the capacity o$ the emergency $und# that:s very important# but it:s not the only thing. Economic re$orms and budget cuts in countries currently under attac! o$ the $inancial mar!ets are at least as important than more money in the emergency $und.:: On 9ednesday# Italian %resident "iorgio *apolitano named $ormer European commissioner &ario &onti a Senator $or li$e. &r. &onti is now considered a leading candidate to replace &r. 'erlusconi. And that:s the VOA Special English Economics Report. 5ollow us on 5aceboo! and Twitter at VOA earning English. I:m &ario Ritter.