Nov. 04 - Italy, under fierce pressure from financial markets and European peers, has agreed to have the IMF and EU monitor its progress with long delayed reforms of pensions, labour markets and privatisation, according to senior EU sources. Matt Cowan reports.
Italy has agreed to have the International Monetary Fund and European Union monitor its progress on reforms according to senior EU officials. The country's Prime Minister Silvio Berlusconi is said to have agreed to the step in late-night talks with euro zone leaders and U.S. President Barack Obama on the sidelines of a G20 summit in Cannes, France. It's an attempt to shore up Italy's perilous position on bond markets, where borrowing costs soared well above 6 percent this week, raising doubts about the country's long-term ability to cope with its massive debt pile. An official Italian source denied that Italy was being singled out for special surveillance and said the whole euro zone would be under closer monitoring. Matt Cowan, Reuters