Italian economy needs political stability, Rehn says

'Important for economic recovery'

Italian economy needs political stability, Rehn says

Rome, August 28 - Italy's political stability is important for economic recovery, European Commissioner for Economic and Monetary Affairs Olli Rehn told Bloomberg on Wednesday. Rehn said in an interview that everybody is aware Italy is having political troubles but he is confident an attempt will be made to ensure political stability which is key for economic recovery. Italy's unprecedented left-right government has been threatened by a number of issues dividing its members, longtime foes the center-left Democratic Party (PD) and the center-right People of Freedom (PdL) party. Most recently, the PdL has threatened to pull the plug if its leader, ex-premier Silvio Berlusconi, loses his Senate seat next month after his first-ever definitive conviction for tax fraud. Another key issue, to be discussed on Wednesday, is the scrapping of an unpopular property tax called IMU, a campaign pledge credited with driving Berlusconi's coalition to a close second behind center-left rivals in February's inconclusive general elections.

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