WORLD NEWS & ANALYSIS
Italy’s Woes Could Undercut Defense
PARIS A ballooning budget deficit may make it impossible for Italian Prime Minister Silvio Berlusconi to increase government support for the aerospace and defense industry, as he has promised to do. Finance Minister Giulio Tremonti’s bombshell last month that the government deficit was likely to reach 1.9% of gross domestic product, and perhaps zoom as high as 2.6%—perilously close to the 3% stability pact ceiling for euro-participating nations—is putting pressure on Berlusconi to pare back government spending.
By MICHAEL A. TAVERNA6 min