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Debt blow adds to headaches for Prodi

By Tony Barber in Rome

Published: October 19 2006 13:02 | Last updated: October 19 2006 21:46

Italy’s ruling centre-left coalition was dealt a blow on Thursday when two credit ratings agencies downgraded Italian government debt, partly because of what they termed the inadequate 2007 budget.

Standard & Poor’s and Fitch Ratings announced the downgrades as a new opinion poll showed a relentless fall in public confidence in Romano Prodi, prime minister, and his government since last July.

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