Naples Flirts With Detroit Fate as Budget Rejected: Euro Credit
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Six years after mounds of trash in the streets of Naples underscored its shaky finances, the Italian city may risk a default after a court rejected plans to cut municipal debt of about 1 billion euros ($1.36 billion).
“Naples is technically bankrupt,” said Riccardo Realfonzo, a professor and former Naples city councilman for economic affairs. “If the auditors won’t change their mind, Naples won’t get a key loan from the state and, like Detroit, will become unable to pay money to its employees or provide basic services.”