Italy’s Democratic Party Says Draghi Aid Wouldn’t Work

An Italian request for aid from the European Central Bank wouldn’t help the economy because it would bring extra requirements for budget austerity, said the economic spokesman for the nation’s Democratic Party, or PD.

“What further restrictive measures will a country in a deep recession and with ever-increasing unemployment, due to the very steep rise in interest rates, have to take?” Stefano Fassina, whose party backs Prime Minister Mario Monti’s government and leads in recent opinion polls, said today in an e-mailed statement from Rome. “It would be self-defeating for Italy, and for Spain, to request aid.”

Italy is seeking to rein in government borrowing costs as it copes with its fourth recession since 2001. ECB President Mario Draghi said today that policy makers agreed to an unlimited bond-purchase program to regain control of interest rates in the region and fight speculation of a euro breakup.

Access to the program would require a nation to request aid from Europe’s rescue fund and agree to conditions. While Fassina appreciates Draghi’s efforts, “we have to understand the conditions required for the ECB to decide to intervene.”

With 28 percent, the PD and its allies received the most backing in a survey released on Sept. 3 by Naples-based polling company IPR. Former Prime Minister Silvio Berlusconi’s People of Liberty party, which also supports Monti’s government, and its allies were second with 21 percent.

To contact the reporter on this story: Andrew Frye in Rome at afrye@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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