Italy's problem is lack of credibility: IMF's Lagarde
Italy's planned budgetary reforms lack credibility, International Monetary Fund chief Christine Lagarde warned Friday, after a G20 summit dominated by the eurozone debt crisis.
"The main problem we have, which has been clearly identified as much by the Italian authorities as by their partners, is a lack of credibility in the measures that have been announced," Lagarde told reporters.
Italian Prime Minister Silvio Berlusconi confirmed earlier Friday that Italy had asked the IMF to help monitor the implementation of its economic reforms, but had turned down an offer of financial aid from the fund.
Lagarde said that the IMF would be monitoring Italy's implementation of austerity pledges made to fellow eurozone members.
"We will be checking the implementation of the commitments that have been made by Italy under the 15-page commitment that it has made to the members of the eurozone a couple of weeks ago," she said.
"It is verification and certification of implementation of a programme that Italy has committed to," the IMF chief added.
German Chancellor Angela Merkel said at a separate news conference that the Italian government had agreed to submit quarterly reports on its reforms.
© 2011 AFP