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Government Approves Financial Support for Rome

Wall Street Journal Original article ›

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The debt and deficits of Rome and other local governments poses a problem for the Italian government. Italy's new government of Matteo Renzi approved a loan of 575 million euros in cash to cover Rome's capital shortfall of 800 million euros for 2013. The decree removes the risk of default. It is an advance to Rome, with Rome expected to come up with a plan to control the deficit and reduce spending.

The government of Italy and the debt of Rome and local governments

03/02/2014

20 billion euros of Rome's debt is set aside as legacy debt guaranteed by the government of Italy to allow Rome to get a handle on its finances. The Italian government of prime minister Renzi provides 575 million euros in financing to Rome in Feb. 2014, with conditions that Rome come up with a plan to control spending. This will help address a capital shortfall of 800 million euros for Rome in 2013.

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