November 4, 2011 / 7:06 AM / 7 years ago

Italy agrees to IMF/EU monitoring reform progress-EU source

CANNES, France, Nov 4 (Reuters) - Italy has agreed to have the IMF and the EU monitor its progress in meeting targets on pension, labour and structural reforms that were agreed with EU leaders last week, a senior EU source said on Friday.

“We need to make sure there is credibility with Italy’s targets — that it is going to meet them. We decided to have the IMF involved on the monitoring, using their own methodology, and the Italians say they can live with that,” he said.

“Italy has no problem with surveillance at all, even with the IMF being involved,” he said, adding the EU Commission and IMF would each report on how Italy was meeting its targets.

He said a precautionary credit line was not seen to be a credible option for Italy, where one of the main problems has been market confidence in its plans.

“With the general climate and Italy’s lack of credibility, every small setback or problem is compounded and makes things worse, so the markets cannot have confidence,” he said.

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