Central government to assist Rome in managing its finances
Italy's finance ministry has played down the enthusiasm of Rome mayor Ignazio Marino who said on 4 October that central government would intervene to help the capital avoid default.
The city government has a budget deficit of over €800 million but will not be receiving a bailout from centraI government. Instead the Italian finance ministry said it would support Rome in its efforts to introduce "a rigorous restructuring of government expenditure as well as its associate companies, including a rigorous review of all service contracts."
Marino has insisted that the capital can reduce its significant deficit by following "twin tracks of rigour and administrative discipline, but without raising taxes", which he said would be "unfair on citizens right now."
Following a request from the mayor, the finance ministry will also conduct an audit to discover if there have been irregularities in the capital's budgets in recent years. Marino hopes to begin the process of restoring "financial equilibrium" in the 2014 budget.
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