Italy's Fazio: planned tax cuts must be financed

In testimony to parliament Bank of Italy Governor Antonio Fazio called on Prime Minister Silvio Berlusconi to guarantee that promised tax cuts can be funded, after government spending outpaced revenue in the first half of the year.

``The public accounts situation that has emerged at mid-year is grave,'' Fazio said in Rome during parliamentary testimony on the 2005 draft budget. ``The necessary measures to spur the economy require greater funding, on a long-term basis, than those foreseen in th