We Don’t Need German Money: Italian PM
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In an interview with German weekly, Der Spiegel, Italian Prime Minister Mario Monti declared that his country does not need German cash. Instead, he says Italy needs the moral support of his European friends, especially Germany.
Pointing out that while five eurozone economies have requested and received international bailouts, Monti said Italy has not received “a single euro” of bailout monies.
He told Der Spiegel:
In an interview with German weekly, Der Spiegel, Italian Prime Minister Mario Monti declared that his country does not need German cash. Instead, he says Italy needs the moral support of his European friends, especially Germany.
Pointing out that while five eurozone economies have requested and received international bailouts, Monti said Italy has not received “a single euro” of bailout monies.
He told Der Spiegel:
[quote] I hope I can help rescue Italy from financial ruin with the moral support from my European friends, especially Germany. But I say quite clearly: moral support, not financial. I emphasize, not with financial help. [/quote]
Separately, Bank of Italy governor Ignazio Visco echoed the prime minister’s comments that the country does not yet need financial assistance, provided Italy “does not abandon fiscal discipline and steps up its efforts to promote growth”.
At the same time, Monti warned of a heightened anti-euro, anti-German and euro-sceptic sentiment that threatens to “destroy the founding of the European project”.
He said:
[quote] The tensions that have accompanied the eurozone in past years are already showing signs of a psychological dissolution in Europe. [/quote]
“There is a front line in this area between north and south. There are reciprocal prejudices, which are very alarming and we must fight against it … Therefore it is the prime task of the nations’ leaders to explain to their citizens Europe’s real situation, and not give in to prejudices,” Monti added.
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The PIGS, or Portugal, Italy, Greece, and Spain, have been the first few nations to fall to the region’s sovereign debt crisis. With the exception of Italy, all three countries have formally requested and received financial assistance.
While the bailout monies have come from organisations such as the International Monetary Fund, the European Central Bank and the European Commission, otherwise known as the troika, Germany is largely seen as the paymaster of Europe, shouldering the burden of some of the heftiest bailouts in recent years.
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