Entries in Spending Cuts (2)


Italy‚Äôs Landmarks Become Billboards to Pay Debt

iStockphoto/Thinkstock(ROME) -- Italy’s financial mess is massive: The country is $2.5 trillion in debt -- bigger than its entire economy.  The Italian government is looking for ways to fund its debts and everything is on the table, including some of the country’s iconic landmarks.

In the past few years, monuments like Michelangelo’s David and the Leaning Tower of Pisa have become billboards.  From the Roman Colosseum to the canals of Venice, nothing appears to be off limits.

The money-making deal wrapping the Bridge of Sighs earned more than $2 million from companies like Bulgari.  The advertisement was recently removed.

To keep things afloat, the country will need to borrow $408 billion next year just to pay the interest on its debt -- that’s the equivalent of selling more than 272,000 monumental ads.

Experts say Italy needs credibility and responsibility in government to get investors back on its side.  Trading in the scandal-ridden Prime Minister Silvio Berlusconi for an economics professor named Mario Monti is the first step, if it happens as expected in the next week.

The next step would be sacrifice: higher taxes and cuts to social programs.  Italians would have to give up some aspects of their “beautiful life” -- job security, long vacations and plush pensions.

But shared sacrifice won’t come easy.  When Berlusconi tried to introduce cuts last month, Italians protested in the streets.

However, the alternative would be much worse: a bankrupt Italy that drags the rest of Europe and the U.S. down with it.

Copyright 2011 ABC News Radio


Thousands Protest Spending Cuts in London

Dan Kitwood/Getty Images(LONDON) -- Hundreds of thousands of people took to the streets of London Saturday to protest against planned government spending cuts.

The massive group of protestors took part in a march and rally that saw one of the biggest turnouts since anti-war protests held in 2003. According to published reports, more than 250,000 people were estimated to have been at the demonstration which saw protestors make their way from Victoria Embankment to Hyde Park. Protestors chanted, blew whistles, and held up signs, as they made their way through city streets.

The demonstration was mainly a peaceful one, however, there were reports that some protestors damaged some shops, and authorities say a number of people were arrested while several others were injured.

Protests erupted as government plans to cut public spending by about $130 billion in an attempt to reduce a budget deficit.

Copyright 2011 ABC News Radio

ABC News Radio