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berlusconi resignation

Borg: "Italy is not Greece"

Published onsdag 9 november 2011 kl 09.20

Sweden's Finance Minister says that Italy will not become a euro-headache on the scale of Greece.

Anders Borg, of the Moderate Party, says to news agency TT on Tuesday evening that Italy will not need any outside help too soon. "Italy has the possibility to reduce its debt itself. The country has large assets, it is able to cut its public spending and increase taxes. There's a big difference between Italy and Greece, if the Italians are ready to carry out responsible policies."

He also says that Italy now needs political stability, and a government that has broad popular support, which can make structural changes to make Italy more "competitive".

Speaking to Swedish Radio News, an analyst from Swedbank says that Berlusconi's resignation can calm the financial markets, at least temporarily.

Cecilia Hermansson is the head economist at the Swedish banking giant. She says that Berlusconi has been a stumbling block to solving Italy's economic problems: "You can see that Berlusconi has not taken his duties seriously, and that the reform process has been halted for several years."

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