New York, April 3 - To contain economic risks it is important to reduce outside criticism and confront Italy's fragility in the eurozone, a working paper published by the International Monetary Fund said on Wednesday. The considerable Italian government debt could make corporate borrowing more costly for domestic firms and "reduce the chances of recovery in the second half of 2013," said senior economist Edda Zoli. The rise in the premium paid by Italian 10-year government bonds over their safer German counterparts continues to generate higher borrowing costs for domestic firms, the paper said. "About 30-40% of the increase in the sovereign spread is transmitted to firm lending rates within three months, and 50-60% within six months," Zoli said. The country's 40 billion euros in public debt means that rising borrowing costs carry a heavier burden than in other eurozone countries.