Prodi: "You cannot kill the country just to pay the debt;" IMF: "Yes, you can!"
<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Prodi: "You cannot kill the country just to pay the debt;" IMF: "Yes, you can!"</h1><p>Apr 14 - In a rare Promethean impulse, covered by Italian Raiuno television, Italian Prime Minister Romano Prodi announced that an expected tax revenue surplus will not be used to pay debt, but will instead be redistributed among families and firms. Two-thirds of the surplus, estimated at a several billion dollars equivalent, will go to poorer families, mostly in the form of rent subsidies; one third will go to corporations.</p><p>In response, Michael Deppler, head of the European Desk of the International Monetary Fund in Washington, said that Italy should reduce its budget deficit as a priority. "Therefore, all the surplus revenues must go to reduce the deficit or be allocated for reducing the debt," the IMF official said, according to Corriere della Sera of April 14.</p></div></body>