ITALY ON USG ROLE IN WORLD BANK'S MULTILATERAL

UNCLAS ROME 001413 SIPDIS E.O. 12958: N/A TAGS: EAID EFIN IT KPAO SUBJECT: ITALY ON USG ROLE IN WORLD BANK'S MULTILATERAL DEBT RELIEF INITIATIVE REF: A. SECSTATE 59558 ¶B. ROME 583 ¶1. EconOff delivered reftel demarche April 14 to Giorgio Guglielmino, Budget Director in MFA's Office of Development Cooperation (ODC),and highlighted the USG's role in proposing and supporting the World Bank's Multilateral Debt Relief Initiative (MDRI),as well as U.S. leadership as the single largest provider of development assistance. ¶2. Guglielmino applauded the continued leadership role of the United States in development assistance, and lamented ODC's difficulties due to severe budget cuts this year (ref. B). Guglielmino noted, however, that center-left leader Romano Prodi suggested, in a March 2006 pre-election speech to ODC members, that a Prodi government could supplement development assistance through the remainder of 2006 to reach 2005 levels. Note. Italy's 2006 budget cut development assistance by 27.6% from 2005 levels. End Note. SPOGLI