By Daisy Ayliffe - 22nd October 2006
EU economic affairs commissioner Joaquin Almunia will meet Italian prime minister Romano Prodi to discuss the outlook for Italy’s controversial 2007 budget.
Europe’s economic chief arrives in Rome on Monday at a tough time for the shaky coalition government.
Officials are struggling to come to terms with pension and healthcare problems, as well as a lack of competitiveness.
And Prodi is attempting to push through a budget to deal with the crises by the end of the year - with a one-seat majority in parliament.
Critics say the centre left leader’s financial plans focus too much on raising revenues without cutting back government spending.
Last week Italy suffered a fresh blow when Standard & Poor's and Fitch cut credit ratings for the country amid concerns over the budget.
Almunia has said he will be “extremely attentive” to the country's budgetary situation following the credit downgrades.
Italian press report the prime minister as saying he will use the meeting to assure Brussels that Italy is keeping pace with the rest of Europe.
“I will offer him direct assurances on our figures,” Prodi is quoted as saying in La Repubblica.
“But I will also show Almunia that this project will allow Italy to move at the same pace as the rest of the EU.”
Almunia is also set to meet bank of Italy governor Mario Draghi and finance minister Tommaso Padoa-Schioppa in Rome.
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