Prime minister sings economy blues

Italy’s ailing economy was back in the spotlight on Thursday as new Premier Romano Prodi met with the country’s top industrialists. According to the European Union’s latest forecasts, Italy’s budget defi cit will rise to 4.1% in 2006 and 4.5% in 2007. Italy’s debt mountain – the third biggest in the world – is estimated to hit 107.4% of GDP this year. Prodi outlined his plan for setting the Italian economy back on its feet, which included a 5% cut over the next year in payroll taxes and social security contributions paid by businesses and workers; greater market liberalization and more investment in research, development and infrastructure. He also promised a shake-up of Italy’s market monitoring authorities such as the anti-trust body.