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Italy Should Have Taken IMF Loan In 2011, Bini Smaghi Says-Report

Italy should have accepted an International Monetary Fund program on offer in late 2011, Lorenzo Bini Smaghi, a former member of the European Central Bank's executive board, said Friday in an interview published in La Stampa."I think it would have been better," Mr. Bini Smaghi said, in one of the more revisionist remarks in the Italian political debate of the past two years.The IMF offered Italy an aid package that was ultimately refused by then-Prime Minister Silvio Berlusconi at a summit in Cannes, France. Mr. Berlusconi then resigned, making way for a technocrat administration run by Mario Monti, who imposed tax hikes and austerity programs that have squelched economic growth."Austerity as it's now lived in Europe is a choice made by governments to avoid politically costly choices like carrying out deep reforms to make economies more productive," Mr. Bini Smaghi said, who is now chairman of Snam (SNMRY), Italy's regulated and state-controlled gas distributor.The ECB wrote a letter t...

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