Sicily default fears add to Monti’s woes

Italian Prime Minister Mario Monti expressed 'serious concerns' on the 17 July 2012 that Sicily’s regional government was heading towards default and asked its governor – who is under investigation for suspected links to the Mafia – to confirm his intention to resign.

Sicily was among 23 Italian 'sub-sovereign entities' downgraded by Moody’s rating agency on 16 July 2012 – following its downgrading of Italy the previous week – a development that raised the possibility of a chain of defaults at the local level unless the central government intervenes.

ESO: Background information: Italian judges arrested in anti-mafia move http://www.europeansources.info/record/italian-judges-arrested-in-anti-mafia-move/

ESO: Background information: Moody's cuts Italy credit rating by two notches http://www.europeansources.info/record/moodys-cuts-italy-credit-rating-by-two-notches/

Reuters, 17.7.12: Italy's Monti says serious worry Sicily region may default http://uk.reuters.com/article/2012/07/17/us-italy-sicily-idUKBRE86G12120120717

BBC News, 17.7.12: Sicily in danger of default, says Italian PM http://www.bbc.co.uk/news/world-europe-18874759

Spiegel Online International, 30.7.12: Corruption and Nepotism Haunt Southern Europe http://www.spiegel.de/international/europe/southern-europe-plagued-by-corruption-and-political-mismanagement-a-847229.html

The Economist, No.8795, 28.7.12, Europe's troubled regions. Another weak link in the euro zone http://www.economist.com/node/21559661

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